A synthetic pool is a collection of financial assets that represent underlying assets without actually owning them. Instead of holding the original asset, these pools use smart contracts or algorithms to create synthetic versions. Participants can trade and speculate on the price movements of these synthetic assets, which can include anything from cryptocurrencies to stocks or commodities. This allows them to gain exposure to different markets and assets without the need to physically acquire them.The creation and management of synthetic pools typically involve decentralized finance (DeFi) platforms. Users can contribute assets to the pool, often in the form of collateral, and in return, they gain access to the synthetic assets. This system can enhance liquidity and facilitate trading options that may not be easily accessible otherwise. However, synthetic pools also come with risks, including volatility and smart contract vulnerabilities. Therefore, users should approach them cautiously and be aware of the associated challenges.