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{% docs defi__fact_liquidity_pools %}
Stellar rolled out Automated Market Makers to its network in Nov 2021, which improves liquidity between asset pairs while incentivizing users to stake money in pools. Liquidity pools provide a simple, non-interactive way to trade large amounts of capital and enable high volumes of trading. Liquidity pools can be created between asset pairs and algorithmically controls the supply of the assets to give the best exchange rate while not requiring an orderbook in order to execute the trade. For each trade executed through a liquidity pool, the users with staked liquidity in the pool earn fees, which are distributed automatically to their accounts. Users can deposit and withdraw money in the pools; trades only execute via path payment operation.
Learn more about Stellar data concepts: https://developers.stellar.org/docs/learn/fundamentals/stellar-data-structures
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