Module 03DefineShort answer live

What is a liquidity pool?

By the FOMOEgg CTO team · Updated October 16, 2026 · Lesson 16 of 48
Join the Telegram
The FOMOEgg egg in the studio, illustrating: What is a liquidity pool?
Short answer

A pot of two tokens that a DEX uses so people can swap. Trading fees go to those who supply it.

How to check it yourself

  1. Find the token's pool on a DEX tracker and note the two tokens in it.
  2. Check the pool's total liquidity and whether it is locked, burned or removable.
  3. Look at recent liquidity adds and removals on the explorer.

Sources

  • blofin.comhttps://blofin.com/academy/education/trading/dex-and-cex
  • bitcoin.taxhttps://bitcoin.tax/blog/?p=42420

Keep learning

← PreviousHow do I check the top holders of a token?Next →What is tokenomics?
See all 48 lessons →

Ask the community

Questions, corrections and topic ideas live in the FOMOEgg Telegram at t.me/fomoeggcto.

Join the Telegram

Education only. Nothing here is financial, investment, legal or tax advice, and nothing here is a prediction or a promise about price. Memecoins are extremely high risk and you can lose everything you put in. FOMOEgg is a community-run memecoin and is not affiliated with Robinhood, PONS or fomo.