What is the role of a liquidity pool ?
Unlike centralized finance (CeFi), decentralized finance (DeFi) does not operate on the basis of order books. Liquidity pools thus ensure instant availability of funds to execute financial transactions.
As a rule, trading operations are carried out using AMMs (Automated Market Makers). These are computer programs that manage the exchange rate between two assets on the basis of a mathematical formula and the liquidity available in the pool in question.