1INCH · 2026-11-03 13:58 UTC

Crypto liquidity pools in 2026: categories, yields and how to evaluate them

Article explains how to evaluate crypto liquidity pools by examining TVL, trading volume, depth, and fee generation rather than relying on headline APY numbers alone. Discusses key metrics: higher TVL doesn't guarantee good returns if volume is low; pool depth affects price impact for traders; LP tokens represent proportional share of pool assets and fees. Covers impermanent loss risk and how pool design affects capital efficiency, with concentrated liquidity potentially generating more fees per dollar but carrying different risks.

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