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web3glossarytoken pair
Token Pair

Summary

A token pair refers to two different cryptocurrencies that are traded against each other on a decentralized exchange (DEX).

Detailed Description

In decentralized finance (DeFi), a token pair is commonly used to denote a pair of tokens that can be traded directly for one another without the need for a central authority to manage the transaction. Typically represented as "TOKEN A/TOKEN B", a trading platform allows users to swap TOKEN A for TOKEN B or vice versa. Token pairs are the fundamental units of liquidity in decentralized exchanges where users can provide liquidity by depositing equal values of both tokens in the pair to earn trading fees.

Category
DeFi, Trading
Synonyms
Currency Pair
Crypto Pair
Trading Pair

Impact Details

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Trading

Users can trade one token for another, for speculative purposes or portfolio rebalancing.

Industries:

Cryptocurrency
Finance

Platforms:

Uniswap
SushiSwap
PancakeSwap
Liquidity Provision

Users provide liquidity to a token pair by depositing equal values of both tokens to earn fees from trades.

Industries:

DeFi
Trading

Platforms:

Balancer
Curve Finance
Arbitrage Trading

Traders exploit price discrepancies between different DEXs using token pairs for profit.

Industries:

Cryptocurrency
Finance

Platforms:

1inch
Paraswap
Swapping Tokens

Users can swap tokens for various uses such as purchase, investment or saving within the DeFi ecosystem.

Industries:

DeFi
Cryptocurrency

Platforms:

Uniswap
SushiSwap

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FAQs

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