Decoded Intelligence Signal
Liquidity Pool
intermediate
market_structure
Verified: May 26, 2026Lexicon Core Definition
A smart contract holding reserves of two or more tokens that enables decentralised trading via an AMM — liquidity providers deposit equal value of both tokens and earn a share of trading fees; the pool's token ratio determines the exchange rate.
Analysis Breakdown
A smart contract holding reserves of two or more tokens that enables decentralised trading via an AMM — liquidity providers deposit equal value of both tokens and earn a share of trading fees; the pool's token ratio determines the exchange rate. Full explanation coming soon when Journey 12 content is ingested.