Imagine a big bowl of fruit at a party. Everyone can grab what they want, and the bowl keeps getting refilled. A liquidity pool is kind of like that bowl, but instead of fruit, it holds cryptocurrencies! These pools are used on decentralized exchanges (DEXs), which are like online marketplaces where people can trade crypto without a middleman. The pool holds two different cryptos (like apples and oranges in our example), and people can easily swap one for the other.
