Where Does the Money Go When Users Trade Tokens?

pandatool 0

When you create a liquidity pool, users trade or purchase tokens using USDT, BNB, or ETH. Does their money go directly to your wallet?

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  • pandatool's avatar
    pandatool Reply

    No. Here’s how it actually works:

    1. Users interact with the liquidity pool, swapping their coins (e.g., USDT) for your tokens.

    2. The money they spend flows into the liquidity pool, increasing the reserve of stablecoins/crypto in it.

    3. Your tokens are deducted from the pool proportionally based on the exchange rate.

    To access those funds, you need to either:

    • Sell your own tokens back into the pool (reducing token supply and taking liquidity).

    • Withdraw liquidity (if you’re a pool provider), claiming your share of the pooled assets.

    ⚠️ Warning: If you rug-pull (drain the pool suddenly), users will notice via on-chain data. Always disclose liquidity rules transparently.

    1 year ago No comments