Digital Assets

Liquidity Pool

Definition

What is Liquidity Pool?

Tokens deposited in a smart contract to support trading, lending, or other protocol activity.

Example in practice

Users supply both sides of a trading pair to a liquidity pool.

Keep learning

A digitally represented asset that uses cryptographic and distributed-ledger systems for issuance or transfer.

An electronically represented item of value or right that can be owned or transferred.

A distributed record of transactions grouped into linked blocks and maintained by a network.

A scarce metal commonly held for industrial use, jewellery, or investment.

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