Defining Defi terms about Liquidity Pool

Liquidity Pool

Liquidity Pool is basically a smart contract that contains funds. A pool where Liquidity Provider (users that add funds to liquidity pools) earns a reward in exchange for providing liquidity to the pool. Those rewards can come from fees generated by the underlying DeFi platform, or from other sources. There is a pool of liquidity that pays their reward in several tokens. Those reward tokens can then be deposited into another liquidity pool to get prizes there, and so on.