Degen Zoo Price

Introduction to DZOO Cryptocurrency

DZOO (Degen Zoo) is a cryptocurrency based on the Binance Smart Chain (BSC). Its mining mechanism is different from other PoS (Proof of Stake) or PoW (Proof of Work) systems, utilizing a method known as "Automated Market Maker" (AMM).

AMM Mechanism

AMM is a decentralized trading method that eliminates the need for a match between buyers and sellers, automatically executing trades through smart contracts. This mechanism relies on a special fund pool known as a "liquidity pool," which holds two different cryptocurrencies. In DZOO mining, these two cryptocurrencies are BUSD and DZOO.

Mining Process

The mining process of DZOO is achieved by providing liquidity. When someone deposits BUSD and DZOO into the liquidity pool, they receive a token known as an LP token (Liquidity Provider Token). These LP tokens represent their share of the BUSD and DZOO contributed to the liquidity pool. Whenever a trade occurs in the liquidity pool, a fee is charged, which is distributed to liquidity providers as a reward for providing liquidity.

Summary

DZOO is a cryptocurrency based on BSC that employs an AMM mechanism and liquidity pools for mining. It enables exchanges between BUSD and DZOO, providing tokens and fee rewards to those that provide liquidity.