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A liquidity pool is a collection of assets and tokens that are used to fund loans on Zest Protocol.
In Zest Protocol, each liquidity pool has an associated
lp-tokencontract principal. Users can fund loans by depositing assets and tokens into the pool, and can withdraw their funds at any time. The pool itself is managed by a
vaultcontract principal, which holds the assets and tokens on behalf of the users. Users can earn rewards for providing liquidity to the pool, which are calculated using the
rewards-calccontract principal. Financial institutions can use these liquidity pools to lend out assets and tokens to borrowers, while mitigating the risk of default by requiring collateral.