DeFi liquidity is what keeps decentralized markets running smoothly. It comes from users depositing crypto into liquidity pools, which are smart contracts holding token reserves used for trading and lending. These pools replace traditional order books and allow instant transactions without intermediaries.

By providing liquidity, users earn a share of fees and rewards, making it a core strategy in DeFi. To explore how this works in real scenarios, listen here: https://castbox.fm/episode/10-Most-Popular-DeFi-Yield-Platforms-id7123465-id917897881