What is a liquidity pool?
2 min readIn short
A liquidity pool holds two tokens, such as a coin and USDC, so people can trade one for the other. The price is set by how much of each is in the pool.
How trades work
When you buy, you add USDC to the pool and take coins out, so the price goes up. Selling does the opposite.
Why locked pools matter
If someone can remove the money from a pool, they can leave holders with nothing. Pools made at graduation on ArkhamPad are locked forever.
FAQ
Who provides the money in a graduated coin's pool?
The USDC raised on the bonding curve moves into the pool at graduation.