How Do Liquidity Pools Factor into the Initial Token Distribution? ⎊ Path

How Do Liquidity Pools Factor into the Initial Token Distribution?

Liquidity pools are essential for the initial distribution, as they enable the token to be traded immediately on Decentralized Exchanges (DEXs). A portion of the initial supply is paired with another asset (like ETH or a stablecoin) and locked into a pool to provide liquidity.

This mechanism facilitates price discovery and allows early investors to buy and sell the token without needing a centralized exchange listing.

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Glossar

Decentralized Exchanges

Access ⎊ These platforms offer permissionless entry to cryptocurrency and tokenized asset markets, democratizing capital deployment into novel financial structures.

Liquidity Pools

Provision ⎊ Liquidity Pools are smart contracts holding reserves of two or more assets, facilitating automated trading via an algorithmic pricing mechanism rather than a traditional order book, and are the backbone of decentralized exchange functionality.