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1) What are Pools?

240

Oct 4, 2020

2) Pools are one of the key fundamental primitives of DeFi. Pools are places you store stuff, and tokenize the ownership.

SBF

@SBF_FTX

Oct 4, 2020

3) For instance, AMMs are Pools. You store ETH + DAI in a Pool, and you tokenize ownership with an LP token. You can send back the LP token to get your ETH + DAI back. Uniswap Pools have a twist: anyone can send DAI to the Pool, and get back an equal % of its ETH.

Replying to

and

That's not how that works. The price moves as a square function. If you put in Dai equal to the amount already in the pool, the price goes up 4x and you get far less than 100% of the ETH that was there. Another interesting fact, you can't actually 0 a price through orders alone.