A liquidity pool is a shared supply of two assets that people can trade between. The XRP Ledger includes automated market makers (AMMs): ledger-based pools that quote swaps using the assets in the pool. The Liquidity page lists the live pools that contain $DROP, including the main XRP / DROP pool and pools paired with other XRPL tokens.
How a pool works
A pool holds both assets in a pair. For example, XRP / DROP holds XRP and $DROP; a DROP / meme coin pool holds $DROP and that community token. A swap trades one asset for the other against the pool. The available amounts and current price affect the quote, so a larger trade can move the price more in a shallower pool.
Liquidity providers deposit both assets into a pool and receive LP tokens, which represent their share. When they withdraw, the amount they receive depends on their share and the pool's then-current balances. The mix of assets may have changed since they deposited them.
Trading fees and LP returns
Each AMM pool has its own trading fee. Eligible liquidity providers can vote on that fee: providers need at least 0.001% of the pool's LP tokens, and the eight largest eligible holders count, with votes weighted by the LP tokens they hold. The XRPL AMM applies the result; DROP's team does not set every pool's fee. The fee paid on a swap stays with that pool and benefits its liquidity providers through the value of their pool share. It is not a separate fixed payment from DROP.
The site measures fees from the pool's ledger history, transaction by transaction, and checks the replay against the ledger. It includes multi-route swaps and fees from single-asset deposits or withdrawals where applicable. A second trade-based calculation runs as a cross-check.
APR means annual percentage rate. The site's estimate takes fee income per LP token over the recent seven-day window and annualises it. It is a snapshot of recent activity, not a forecast. It can rise or fall as trading changes, and a pool with too few swaps in the window does not show an APR. The pool table and its methodology section explain the current figures and update timing.
Understand the risks
Providing liquidity can lose value. If the two token prices move relative to each other, withdrawing your share can leave you with less value than if you had simply held the original assets. This is often called impermanent loss. Trading fees may not make up for it. Token prices, pool activity and the ability to trade can also change.
APR is not guaranteed profit and does not include impermanent loss. Read what impermanent loss means and how to add liquidity before depositing assets.
Use the live Liquidity page to compare pools. Figures such as TVL, volume, fees, APR and LP holders can change; none of the historical examples or estimates is a promise of future performance.