An oversubscribed pool occurs when the demand for participation in a project, such as a token sale or yield farming initiative, exceeds the available supply of tokens or assets. For instance, if a project offers 1 million tokens but receives requests for 1.5 million tokens, the pool is considered oversubscribed. This situation often reflects strong interest or confidence in the project, signaling potential investor enthusiasm.In many cases, when a pool is oversubscribed, not all participants receive the full amount they requested. The project may allocate tokens on a pro-rata basis, meaning participants receive tokens in proportion to their requests. Alternatively, the project could employ a lottery system or other methods to distribute the limited supply.Oversubscribed pools can lead to increased market interest and speculative trading once the assets become available. However, they can also create disappointment for investors unable to secure the desired amount, highlighting the competitive nature of new offerings.