When working with DEX liquidity, the capital that fuels decentralized exchange trades, letting users swap tokens without a central order book. Also known as liquidity on DEX, it forms the backbone of DeFi trading.
At the heart of any DEX are Liquidity Pools, smart‑contract vaults that hold pairs of tokens for swapping. These pools encompass the concept of Automated Market Maker (AMM), an algorithm that prices assets based on pool ratios. The relationship is clear: Liquidity Pools require AMMs to function. Add Yield Farming, the practice of staking LP tokens to earn extra rewards and you see how DEX liquidity grows—yield farming influences pool depth, which in turn improves swap rates.
Beyond pools and AMMs, token swaps, slippage settings, and gas considerations shape the user experience. Traders often look for low‑fee routes, so understanding how pool size and AMM curves affect price impact is essential. Whether you’re a casual swapper or a DeFi strategist, mastering these components lets you move assets efficiently and tap into extra earnings through farming.
Below you’ll find a curated collection of guides, reviews, and deep dives that break down each element— from setting up wallets to optimizing yields. Dive in to see how real‑world projects apply these principles and get hands‑on tips you can start using today.
A deep dive into DYORSwap, Sonic's native DEX, covering liquidity, fees, on‑boarding steps, security risks, and how it stacks up against Uniswap and PancakeSwap.
Tycho Bramwell | Oct, 23 2025 Read More