What is Liquidity pool?
A smart contract holding two tokens that traders swap against on a decentralized exchange.
Instead of matching buyers with sellers, a DEX lets traders swap with a pool. If you buy token A with token B, you add B to the pool and take A out, and the price shifts according to the pool's formula (see automated market maker).
Anyone can supply tokens to a pool and earn a share of trading fees. Those providers take on impermanent loss. A token can have many pools on different DEXes and chains; our DEX pages list them and add up their liquidity.
