A liquidity pool is a collection of funds locked in a smart contract.
Liquidity pools are used to facilitate decentralized trading, lending, and many more functions.
Okay, but why should I care?
Providing liquidity is the act of locking up ADA and the token (YUMMI).
So for example, a liquidity value of 1,000 ADA would consist of 500 ADA and 368,732 YUMMI.
By doing this, you help the Yummi Universe grow by reducing price swings and you'll be earning a small fee for providing this service.
So what's farming?
Farming, or Farming Liquidity is when you lock the liquidity you provided into a smart contract.
When you do this, you start earning more and/or different rewards. Each DEX has a different implementation and different rewards.
How does this relate to Naru staking?
Because you're providing a service to the Yummi Universe ecosystem, we want to reward you as well.
So we track your Liquidity and provide you with an additional boost to your Naru staking rewards
Click here for more info about that!
Great, where do I start?
There are lots of options in the Cardano ecosystem! But we recommend Muesliswap