In the liquidity pool, two cryptocurrency assets can be deposited in pairs, and the assets can be safely deposited.
The deposited smart contract is called a 'pool' of one asset.
We call a user depositing assets in a smart contract pool a Liquidity Provider (LP). If there is a Ripple+Ethereum pool, anyone in the market can deposit as much Ripple and Ethereum as they want into the pool.
When you deposit, you deposit a quantity of tokens of equal value, based on the current price of each token. If the current prices of Ripple and Ethereum are $2.0 and $4,000, respectively, a user who wants to deposit 100 XRP must deposit 200 USD worth of Ripple (2.0*100) and the same amount of Ethereum, so deposit 0.05 ETH together. You should.
(200/4000) At this time, the price of cryptocurrency is not based on the price of an external exchange, but based on the exchange rate (price) of the two assets deposited in the contract pool in ClaySwap.
Rewards are distributed every second from the point of completing the asset deposit, and the assets deposited in the pool can be withdrawn again at any time if desired.