Liquidity Pool #2/3

A liquidity pool can be thought of as a pot of cryptocurrency assets locked within a smart contract, which can be used for exchanges, loans, and other applications. In traditional finance (Centralised Finance or CeFi), liquidity is provided by a central organization, such as a bank or a stock exchange. Olympus Pro creates bonds by allowing Liquidity Providers (LPs) to exchange tokens for the governance protocol at a reduced rate. This process, called bonding, allows LPs to lock in liquidity by keeping the bonds in Olympus’s Treasury. The hope is that bonding will create stable permanent liquidity for DeFi protocols.