# Pools Feature

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#### <mark style="color:purple;">Liquidity Pool</mark>

The pools feature on Shade Protocol's app allows users to provide liquidity to different liquidity pools and earn rewards. A liquidity pool is a collection of tokens locked in a smart contract that facilitates trading on decentralized exchanges. Users can add equal amounts of two assets (e.g., SILK/ETH) to a pool and earn SHD rewards on their deposited liquidity. The dashboard shows key metrics and recent price action on ShadeSwap, Shade's privacy-preserving automated market maker built on Secret Network. When providing liquidity, users can choose to either stake their issued LP tokens to earn additional rewards or simply hold the LP tokens to collect trading fees. Withdrawing liquidity follows similar steps of selecting the pool and specifying whether to withdraw one or both assets.

In short, a liquidity pool is a pool of tokens that are locked in a smart contract on a blockchain. The tokens in the pool are used to facilitate trading on decentralized exchanges (DEXs) and provide liquidity to the markets.

Learn how to enter and exit a pool [here](https://hadeprotocol.io/shade-guide/liquidity-pools-enter-exit).\
The difference between Minting LP Shares and Stake vs. Minting LP Shares [here](https://shadeprotocol.io/shade-guide/liquidity-pools-mint-lp-shares).

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*Information provided in this post is for general informational purposes only and does not constitute formal investment advice. Please read the full disclaimer at* [*shadeprotocol.io/disclaimer*](https://shadeprotocol.io/disclaimer) *before relying on any information herein.*

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