# What are LP Pools & IL Liquidity pools are stored crypto assets to make trading of major exchanges on DEX (decentralized exchanges) easier. Liquidity pools are reserves of tokens secured in smart contracts. * They provide liquidity in DEX, attempting to mitigate the problems caused by the illiquidity in such systems. * The convergence of orders, establishing price quotations (if reached) decide whether the asset will continue to surge or decline, are also referred to as liquidity pools. * The same DEX that uses crypto liquidity pools uses AMM (automated market maker) approach. Such exchange platforms have the feature to replace conventional order books with pre-funded on-chain liquidity pools for both assets of the trading pair. * For more information pools and impermenant loss.See these videos from Whiteboard Crypto. {% embed url="" %} {% embed url="" %}