Liquidity Pool
A pool of tokens locked in a smart contract to facilitate trades, lending, or other functions. Liquidity providers deposit assets and typically earn fees or rewards.
Appears in 0 whitepaper sections
Related Stories
Whitepaper Deep Dive
Aave V2 Whitepaper: The Architecture of Decentralized Lending
Understanding Aave's lending pool design, aTokens, flash loans, and the interest rate model that powers one of DeFi's l…
Whitepaper Deep DiveUniswap V2: How Constant Product Markets Changed DeFi Forever
A technical walkthrough of Uniswap's x*y=k formula, price oracles, flash swaps, and the elegant simplicity behind decen…
Technical ExplainerDeFi Lending Protocols: How Aave and Compound Replace Banks
The mechanics of overcollateralized borrowing, variable interest rates, liquidation, and flash loans in decentralized l…
Technical ExplainerAutomated Market Makers: How DEXs Trade Without Order Books
Understanding constant product formulas, liquidity pools, impermanent loss, and why AMMs revolutionized token trading.