# Liquidity Baking **URL:** https://forum.tezosagora.org/t/liquidity-baking/2587 **Category:** TZIP **Created:** [January 7, 2021, 5:23pm UTC](https://forum.tezosagora.org/t/liquidity-baking/2587 "2021-01-07T17:23:17Z") **Posts on this page:** 1 **Showing post:** 8
### Author: ![Allistar](https://forum.tezosagora.org/letter_avatar_proxy/v4/letter/a/85f322/32.png) [@Allistar](https://forum.tezosagora.org/u/Allistar) #### Post date: [January 15, 2021, 5:18pm UTC](https://forum.tezosagora.org/t/liquidity-baking/2587/8 "2021-01-15T17:18:07Z")
So I’m trying to check if I got this right: - Would it be correct to describe Liquidity Baker as a variation of a liquidity pool? (Or not a variation but actually a liquidity pool) - People will need to supply 50-50% of value in tez/tzBTC, correct? Just like in the Dexter tez/tzBTC LP. You won’t be able to only supply one of the two. - Everything works the same as when people currently supply value to a tez/tzBTC pool, but the only difference is the fact that they can’t delegate their tez. Instead they receive subsidy. - I’ve been reading through this [Liquidity mining on Tezos](https://forum.tezosagora.org/t/liquidity-mining-on-tezos/2529) and I’m a bit confused as to the purpose of the liquidity. Initially I thought that trading on Dexter would tap into the liquidity of the Liquidity Baker Tez/tzBTC pair. But every time someone mentions Dexter, the discussion takes a turn. Is this a correct way of phrasing things: 1. Liquidity Baker is a fork of a part of Dexter code. So not built on Dexter. 2. People trading tez / tzBTC on Dexter do tap into the liquidity that is provided by Liquidity Baker 3. No other exchange or application taps into the liquidity that is provided by Liquidity Baker --- _[View the full topic](https://forum.tezosagora.org/t/liquidity-baking/2587)._