Crypto / DeFi

Liquidity Pool

Definition

A pool of tokens locked in a smart contract to facilitate decentralized trading on automated market makers.

Example
Users add equal value of two tokens to a Uniswap pool. 146 FOREX TERMS (Batch 2 – New) Major Currency Pairs Category: Forex Definition: The most liquid and widely traded forex pairs, typically involving the U.S. dollar (e.g., EUR/USD, GBP/USD, USD/JPY). Rela
Related Terms
Frequently Asked Question
What is Liquidity Pool in trading?
A pool of tokens locked in a smart contract to facilitate decentralized trading on automated market makers.
APA Citation
Clark, R. (2025). Liquidity Pool. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/liquidity-pool
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.