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Pooled Capital

Definition

Pooled capital refers to funds collected from multiple investors and combined into a single, larger investment vehicle. In digital asset markets and decentralized finance (DeFi), this often occurs through liquidity pools, staking pools, or decentralized autonomous organizations (DAOs), allowing participants to collectively invest or provide liquidity. Pooling resources enables access to opportunities that might be inaccessible to individual investors due to size constraints or complexity. It facilitates diversified investment strategies and supports various protocol functions, such as lending or automated market making.