Definition
A liquidity pool is a smart contract holding token reserves that powers decentralized trading. Learn how liquidity pools work in DeFi.
Why It Matters
Understanding Liquidity Pool helps you read crypto market data more accurately and make better-informed decisions when comparing coins, projects, and on-chain activity.
Where You'll See It
Liquidity Pool appears throughout cryptocurrency analytics on Crypto Market Watch — including coin profiles, rankings, and other glossary entries. Continue with related glossary terms or read the longer-form learn articles for deeper context.