> For the complete documentation index, see [llms.txt](https://tezonians.gitbook.io/tezonians/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tezonians.gitbook.io/tezonians/taco-dao/liquidity-pools.md).

# Liquidity Pools

Information on the current tDAO Liquidity Pools

## What is a Liquidity Pool?

A **liquidity pool** is a collection of funds locked in a smart contract. **Liquidity pools** are used to facilitate decentralized trading, lending, and many more functions. **Liquidity pools** are the backbone of many decentralized exchanges (DEX), such as QuipuSwap on Tezos.

## QuipuSwap

QuipuSwap is an open-source **AMM protocol** that provides an interface for the seamless exchange of  Tezos tokens (DEX). The company behind this product is **madfishofficial**.

**Current tDAO Liquidity Pools:** [tDAO / XTZ](https://quipuswap.com/invest/add-liquidity)

## Adding (tDAO / XTZ) Liquidity to Quipuswap

Under the **Invest** tab enter the following

**Token Deposit:** XTZ

**Token Deposit:** tDAO

**Amount:** Select your amount in XTZ and it will calculate the amount in tDAO. You must have equal value in each side.

**Add Liquidity:** Click and Confirm the Transaction

![](https://1755116548-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MZsXxcpdjmPrV7EXWlx%2F-MZtnzursskr9o5PosqO%2F-MZtqo2CiqPuC6c1tyH_%2FQuip%20Add.jpg?alt=media\&token=a4ca3970-c4cd-4fb0-afa9-49218d61d894)