> For the complete documentation index, see [llms.txt](https://docs.ociswap.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ociswap.com/ociswap-dex/liquidity-pools.md).

# 💦┃Liquidity Pools

Liquidity pools are like shared pots of tokens where DeFi users can deposit their assets. These pools power decentralized exchanges, allowing users to trade directly without intermediaries. By providing assets to these pools, contributors (liquidity providers) can earn rewards. 

These liquidity pools use pre-programmed mathematical formulas and rules to determine the transaction prices, pool balances and user rewards.

{% hint style="info" %}
Overall, Ociswap categorizes pools into two distinct types: 

* [**Ociswap Pool V2**](/ociswap-dex/liquidity-pools/pool-v2.md)
* [**Ociswap Precision Pool V2**](/ociswap-dex/liquidity-pools/precision-pool-v2.md)

These liquidity pools can be modified by [**Hooks**](/ociswap-dex/liquidity-pools/hooks.md).
{% endhint %}