Farm & Pool

In decentralized finance (DeFi), it is common to exist farm and liquidity pool in projects. Both are very important in the functioning of DeFi, as they ensure the smooth functioning of the market and allow investors to receive income on their tokens.

Liquidity pools are fundamental tools to ensure the smooth functioning of the market. They work by allowing Holders to lock their tokens in exchange for rewards. Locked tokens ensure that the market will have a sufficient supply and with that, trading can take place without liquidity problems.

Farm works similarly to interest-earning investments. In this way, it is able to produce passive income for the token holders.