An Unlimited Pool refers to a decentralized liquidity pool that allows users to trade assets without any fixed supply limit. In this setup, liquidity is provided by multiple participants who contribute their tokens to the pool. The pool’s resources are not capped, meaning that as more users join and contribute assets, the overall liquidity can grow indefinitely.This model enhances market efficiency by enabling smoother trades and reducing slippage, which is the difference between the expected price of a trade and the actual price. Without a limit, participants can often find better pricing and quicker execution for their trades.Unlimited Pools are typically governed by automated smart contracts that manage the distribution of liquidity. Users can earn rewards in the form of transaction fees or tokens for providing their assets to the pool. While this system can promote greater participation and accessibility, it also requires careful management to avoid issues such as impermanent loss, where the value of assets in the pool can fluctuate compared to holding them separately.