word
liquidity pool
lih-KWID-ih-tee POOL
lɪˈkwɪdɪti puːlListen
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Syllable breakdown
liquiditypool
Dictionary meaning
a smart contract holding reserves of two or more tokens that enable automated trading on decentralized exchanges; liquidity providers deposit tokens and earn a share of trading fees; prices are determined algorithmically by the ratio of tokens in the pool
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