A pool token represents a unit of ownership in a liquidity pool, which is created when users contribute funds to a decentralized exchange or platform. These pools allow for the exchange of tokens and provide liquidity for trading pairs, making it easier for users to buy and sell cryptocurrencies.When users deposit their assets into a liquidity pool, they receive pool tokens in return. The number of pool tokens received corresponds to the amount of liquidity provided. These tokens can be traded, held, or redeemed to withdraw the original assets plus any earnings generated from trading fees.Pool tokens also play a role in governance for certain decentralized platforms, allowing holders to participate in decision-making processes. By holding these tokens, users can influence the direction of the project, including changes to fees or features.In essence, pool tokens serve as a representation of a user’s stake in a liquidity pool, offering both a way to earn rewards and a voice in the management of the platform.