Understanding Liquidity Pools: The Backbone of DeFi Trading
What Is a Liquidity Pool?
A liquidity pool is a crowd-funded reservoir of digital assets locked in a smart contract. It replaces traditional order books by always offering a price for token swaps, enabling decentralized exchanges (DEXs) like Uniswap, PancakeSwap, and Curve to operate 24/7 without relying on centralized