Glossary
Liquidity pool (LP)
Also written or said as: lp, pool, pair, trading pair
A pot of two tokens, for example SOL and a memecoin, that traders swap against.
Every DEX trade goes through a pool: you put SOL in and take tokens out, or the reverse. Whoever deposits into the pool gets LP tokens that let them withdraw their share later. On a coin's pool, those LP tokens are the key to the vault, which is why traders check whether they are burned or locked.
Learn it properly inLiquidity and volumeReading a coin · 4 min readThis guide is for learning. It is not financial advice. Most memecoins go to zero and most people who trade them lose money. Only ever trade what you can afford to lose.