Glossary
Liquidity
How easily you can trade an amount without moving the price a lot.
Liquidity is not a virtue score. It is whether there are willing buyers and sellers near the current price. A token can have a pretty chart and still be hard to exit. Thin liquidity plus a large sell is how “down 90%” happens in an afternoon.
In DeFi, providing liquidity to a pool is a job with its own risks, including the price of the two assets drifting apart. It is not a savings account.
