A liquidity pool is a collection of funds locked in a smart contract where lenders deposit their crypto assets. This is also where you mint and burn cTokens.
A lending pool is created by a smart contract , where you deposit your cAssets to borrow crypto tokens.
When depositing your crypto assets into FullDAO's vaults or lending pools, your wallet also receive cAssets (cTokens or cLPs) as a "receipt" to proof that you have supplied assets to FullDAO's system. In another word, you will mint cAssets at the same time you deposit and these processes occur in a single smart contract. You can only use cAssets in FullDAO's ecosystem.
The value and amount of cAssets are equal to your deposited assets. For example, if you deposit 2 AVAXs worth $80 to FullDAO's staking pool, you will receive 2 cAVAXs also worth $80.
There are 2 ways to use cAssets. 1. You can withdraw your deposited assets using cAssets in your wallet. 2. When using FullDAO's Lending Pool, you can deposit cAssets as collateral assets to borrow up to 50% the value of your cAssets.
The collateral ratio (i.e collateral coverage ratio) is the percentage of a loan that's secured by a discounted asset. In another word, it compares the value of collateral to the loan it is meant to secure. The lower the ratio, the higher the risk for lenders; the higher the ratio, the lower the risk for lenders