What are liquidity pools on PancakeSwap ?

The previous weeks I am investing in DeFi projects that are built on the Binance Smart Chain (BSC). I know how to use the tools, I know how to swap, I know hot to connect my MetaMask wallet, I know how to provide liquidity to the liquidity pools, but I also have questions.

What is exactly a liquidity pool?
How does a liquidity pool work?
What is AMM?
How is the price set within a liquidity pool?
What is impermanent loss?



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Crypto And DeFi

Crypto And DeFi

Sharing my practical experiences in the crypto space. https://linktr.ee/rvdkimmenade