Harry 
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let's explore some liquidity pool types first we have constant product pools like the ones used by Unis swap these keep the ratio of two tokens balance by adjusting their prices based on supply and demand next stable coin pools like curve Finance they specialize in minimizing slippage and fees for stable coins and smart pools on platforms like balancer which let creators tweak pool settings dynamically then lending pools like a where users can earn interest or borrow against their collateral finally algorithmic pools these adjust pool settings using algorithms to balance everything.
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