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Meaning of liquidity pool

Source language: EnglishDictionary language: English

liquidity

Pronunciation:/lɪkˈwɪdəti/

noun

Definitions

  1. The degree of which something is in high supply and demand, making it easily convertible to cash

    Example: My Picasso painting is not very liquid, it would take me months to sell it. Gold on the other hand is convertible to cash at any moment, making it a very liquid commodity.

  2. The state or property of being liquid.

  3. An asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.

    Example: Some stocks are traded so rarely that they lack liquidity.

  4. Availability of cash over short term: ability to service short-term debt.