Every Uniswap liquidity pool is essentially a new trading pair of tokens. When a pool contract is first created, its balances of each token are 0. For the pool to begin allowing trades, users must first fund it with an initial deposit of each token. This first liquidity provider is responsible for setting the initial price of tokens in the pool.
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Every Uniswap liquidity pool is essentially a new trading pair of tokens. When a pool contract is first created, its balances of each token are 0. For the pool to begin allowing trades, users must first fund it with an initial deposit of each token. This first liquidity provider is responsible for setting the initial price of tokens in the pool.