A liquidity pool offers users liquidity at any price level. This property is a valuable benefit for projects seeking immediate liquidity for their project’s token. When the token has yet to go through an extended price discovery phase, it is really anyone’s guess as to its value. Thus, when a project creates a new liquidity pair for its protocol token, the initial price swings can be quite volatile, especially when there is less than $100,000 of value in the pool.