What Is Liquidity pool?

Liquidity pool is the available trading liquidity of a single trading pair in AMM.

In a liquidity pool, liquidity providers pool together one of more tokens that users can trade against. For providing liquidity, the providers are rewarded in swap fees.

Liquidity pools are often their own smart contracts that can be easily explored and tracked in a blockchain explorer.

DeFi and trading Dictionary

You are currently browing Trading Strategy's DeFi, Web3 and trading terminology database. See the full dictionary for more terms.

Learn algorithmic trading

Start learning algorithmic trading and quantitative finance from Trading Strategy's learning resources collection.

What Is Liquidity pool?

DeFi and trading Dictionary

Learn algorithmic trading

Do you want to become an expert on decentralised technology?