LiquidityLiquidity is a measure of the degree to which an asset or security can be quickly bought or sold in... Read More pools are shared pools of assets that are readily available for trading on a decentralizedDecentralization, an aspect of blockchain technology, facilitates power or authority distribution among individuals, groups, or institutions. A decentralized structure allows... Read More exchangeAn exchange is a marketplace where traders can buy and sell cryptocurrencies and other digital assets. The "exchange" acts as... Read More. To form a liquidity pool, users deposit assets into a smart contractSmart contracts are computer programs that facilitate self-execution and self-enforcement of digital contracts and agreements without third-party intermediaries (such as... Read More, allowing them to trade with other users who have also deposited assets into the same smart contract.