DeFi pooling is the process of locking tokens into a smart contract in order to make a pool of assets for liquidity. Liquidity pools are used to facilitate token swapping through Decentralized Exchanges (DEXs), DeFi lending and borrowing, and more. Adding tokens to a liquidity pool generates a percentage yield. The liquidity pools are used to fund and collateralise these decentralised exchanges and lending of tokens. Liquidity pools are the basis of how many DeFi platforms work.