Liquidity pools are a revolutionary concept that are taking over the world of decentralized finance. They are the next step in generating tremendous amounts of revenue – something that centralized finance was never able to accomplish for people. And here, we are talking about returns as high as 50% per year. Can you tell us one savings account that offers as high APYs (Annual Percentage Yield) as a liquidity pool provider in decentralized finance? Don’t waste your time – you won’t be able to find an answer.

With Bollo Me, you can easily speculate on the price of BOLO (our native token) by providing liquidity to any pool of your choice. You have the freedom to choose any cryptocurrency to provide to several liquidity pools. Now, the question that you’d be asking would be – what are liquidity pools anyway? Here’s a quick explainer.

Think of a liquidity pool as a “pool” of various cryptocurrencies from which borrows can easily loan some cryptocurrencies. These cryptocurrencies can be any – from bitcoin to Ethereum to even BOLO. The idea is that because in decentralized finance there is no concept of a centralized bank which offers loans to people who wish to borrow money, pools like these are created which act as a substitute for that centralized entity. The only benefit here is that they are not being controlled by anyone – rather they are governed by something known as smart contracts.

When you provide your own cryptocurrencies to any of these pools, you are increasing the liquidity of that particular pool. This means that borrowers are more easily able to loan the cryptocurrencies within that pool. And when they do loan a currency, then you get a “return”, which is also known as yield. This yield is what makes liquidity pools work.

So, instead of storing your cryptocurrencies in a wallet, or even on an exchange, you are essentially putting them to use by loaning them out to various borrowers who are providing an interest rate against it.

Go ahead and provide liquidity to any of your favored pools on Bollo now!