Custom Pool

A Custom Pool in Web3 and DeFi protocols is a liquidity pool that allows users to deposit assets or provide liquidity for loans under specific, customizable conditions. Unlike standard protocol pools, Custom Pools can be tailored to fit individual needs, including particular assets, interest rates, collateral requirements, and risk management settings.

These pools offer flexibility for both depositors and borrowers, supporting personalized liquidity provision and tailored lending environments for specialized conditions or asset classes. For instance, a Custom Pool might enable higher LTV ratios or specific collateral requirements, while investors can join pools that align with their risk tolerance and yield expectations.

Custom Pools enhance user flexibility, allowing them to engage in transactions that match their financial goals and risk management strategies—making them a valuable component in DeFi ecosystems.