DeFi

Liquidity pool

A smart contract holding assets used for decentralized trading.

What it means

A pool lets users swap between assets by trading against reserves rather than a traditional order book.

Why it matters

Pool size affects slippage, exit capacity, and manipulation risk. Pool ownership and lock status can also matter.

Same category

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DeFi

Impermanent loss

The relative loss liquidity providers can face when paired assets move.

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DeFi

Total value locked (TVL)

The value of assets deposited in a protocol.

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DeFi

Real yield

Yield supported by economic activity rather than only token emissions.

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