Protocol Owned Liquidity (POL) refers to tokens owned by the protocol for the purpose of being used in exchanges.

Liquidity refers to the amount of assets, such as crypto tokens, that are available to be traded within a market.

In the context of DeFi, POL refers to the amount of liquidity that is owned by a particular protocol and is available for use within that protocol’s ecosystem.

POL is an important concept in the world of DeFi, as it can provide insight into the level of activity and growth within a particular protocol. A protocol with a high level of POL is generally considered to be more successful and active than one with a lower level of POL.

There are a few different ways that a DeFi protocol can acquire liquidity. One common method is through the use of liquidity mining, where users are incentivized to provide liquidity to the protocol by being rewarded with the protocol’s native token. Another method is through the use of liquidity pools, where users can deposit their assets into a pool and earn a share of the fees generated by the protocol.

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