# Liquidity Pool

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A liquidity pool is a Tydro market instance that enables users to participate as suppliers or borrowers. Parameters such as reserve configurations and collateralisation thresholds define each pool.

Suppliers deposit liquidity into the pool that borrowers can access through overcollateralised positions. In return, suppliers earn interest while borrowers gain access to liquidity, all facilitated through decentralised smart contracts.

Tydro liquidity pools operate across supported blockchain networks. Smart contracts enforce pool parameters and automate borrowing, repayment, and liquidation without intermediaries. This decentralised design enhances the transparency, efficiency, and security of financial interactions within the pool


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