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Automated market makers (AMMs) make it possible for decentralized exchanges to provide liquidity for traders while regulating the price of the tokens being traded. In return, these liquidity providers get a share of the trading fees generated on the DEX. The current liquidity pooling model has proven popular with DEXs like Uniswap, but there is a new method known as Directional Liquidity Pooling. The main difference with this method is that it allows liquidity providers to choose how their liquidity is used by a DeX.
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