A liquidity pool in cryptocurrency is a pool of digital assets locked in a smart contract on a decentralized exchange (DEX). These pools provide liquidity, enabling users to exchange, borrow, or lend tokens without traditional intermediaries. Liquidity providers (LPs) add assets to the pool, earning trading fees in return.A liquidity pool is a collection of funds locked in a smart contract within a decentralized finance (DeFi) network. These pools are essential for providing liquidity on DeFi platforms, enabling users to exchange, borrow, or lend digital assets without relying on traditional intermediaries
