An Automated Liquidity Pool is a system designed to facilitate trading without the need for traditional market makers. It consists of smart contracts that hold funds in a decentralized manner. Users deposit tokens into the pool, which are then used to provide liquidity for trades on various platforms. When a user trades assets, the pool automatically calculates the price based on the ratio of tokens available, ensuring fair and efficient transactions.This system benefits liquidity providers by earning fees from trades made within the pool. In addition, it enhances market efficiency by allowing users to trade whenever they want, without relying on counterparties.Automated Liquidity Pools also promote decentralization by removing the need for a centralized exchanges. This structure can lead to lower trading fees and reduced price manipulation risks, making it more appealing for traders and investors alike.