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Liquidity Pool

A collection of tokens locked in smart contracts to facilitate trading on DEXs. In Polkaswap's liquidity aggregation system, pools can come from various sources including AMM DE…

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Core definition

What it means

A collection of tokens locked in smart contracts to facilitate trading on DEXs. In Polkaswap's liquidity aggregation system, pools can come from various sources including AMM DEXs, order books, and algorithms. The platform aggregates liquidity from multiple pools to provide better prices and reduced impermanent loss through smart routing.

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Recent Soranauts articles tagged with this glossary concept.

Examples

Common scenarios where this concept appears.

  • XYK pools on Polkaswap
  • Multi-source liquidity aggregation
  • Cross-chain trading pools
  • Reduced pair fragmentation

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