Solana trading glossary
What is a liquidity pool?
Also called: Pool, AMM pool, Liquidity
A pair of token reserves on a decentralized exchange that traders swap against. Its size decides how much you can buy or sell before the price moves.
Most Solana tokens trade in pools on DEXs such as Raydium, Orca, Meteora and PumpSwap. A pool holds two reserves, for example a memecoin and SOL. When you buy, you add SOL and take tokens out, and a formula moves the price so the pool stays balanced.
The deeper the pool, the less a given trade moves the price. A token can show a large market cap while its pool holds only a few thousand dollars of SOL. In that case the market cap is a paper number: selling even a small position would crash the price.
Why it matters before you trade
How NAVI shows it
The on-chain liquidity check on each token page adds up liquidity across the token's pools and names the largest. It passes at $250,000 or more and fails under $50,000. The token analytics page explains where NAVI gets pool and price data.
Related terms
- Price impactHow far your own trade moves the price in the pool, shown as a percentage of the price before the trade.
- SlippageThe gap between the price you were quoted and the price your swap fills at. Slippage tolerance is the most you will accept before the swap fails.
- LP lockLiquidity-provider tokens held in a time-locked contract, so the liquidity cannot be withdrawn until the lock expires.
Last reviewed 2026-09-25. NAVI is informational only and nothing here is financial advice.