A Dynamic Pool is a mechanism in blockchain networks designed to allocate resources or tokens more flexibly. Instead of having a fixed amount of tokens assigned to a particular purpose, a dynamic pool adjusts based on demand and other factors. This allows for better utilization of resources.In practice, this means that the pool can expand or contract based on user activity or market conditions. For example, if more users join a platform, the pool can grow to accommodate their needs, ensuring sufficient liquidity and reducing bottlenecks.Dynamic pools are particularly useful in decentralized finance (DeFi) systems, where user interaction can fluctuate significantly. By adapting to changing circumstances, these pools help manage risk and enhance efficiency, ultimately benefiting users and the overall ecosystem. In summary, dynamic pools provide a flexible structure that can respond to varying demands, leading to improved performance and user satisfaction.