Liquidity pool

A liquidity pool is a smart contract holding two or more assets against which traders swap, with prices set by a formula rather than an order book. Whoever controls the pool's deposits controls whether anyone can sell.

manipulation techniques · updated 2026-11-06

Where does liquidity pool come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Rug pulls — A rug pull is a crypto scheme in which the operators withdraw the liquidity backing a token, or mint unlimited new supply, leaving holders with an asset that cannot be sold at any price.
• Sandwich attacks and MEV — A sandwich attack places one transaction immediately before a victim's pending swap and another immediately after it, moving the pool price so that the victim trades at a worse rate and the attacker keeps the difference.

Enforcement actions involving these techniques

See also

• Automated market maker — An automated market maker prices swaps from the ratio of assets in a pool using a fixed formula, with no order book and no discret…
• Rug pull — A rug pull is a crypto scheme in which the developers withdraw the liquidity backing a token, or mint unlimited new supply, leavin…

Terms that refer here

Automated market maker · Flash loan · Price oracle · Rug pull

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