LIQUIDITY PRACTICE / 6 MIN READ

Research a pool before entering

Start with the token contract, not its symbol. Look at the pool’s fee tier, trade activity, liquidity depth and price history. New tokens may have concentrated ownership, restrictive transfer logic or permissions that change their behavior.

Compare more than one market for the same token. Large displayed volume can coexist with low depth, and a small trade can move a thin pool substantially. Cook links token and pool addresses so you can inspect the actual contracts in the explorer.