Who is a Crypto Liquidity Provider?
A Liquidity Provider is a user who deposits cryptocurrencies with a Decentralized Application (dApp). The LP earns returns for the deposits. For example, by adding cryptocurrencies to a liquidity pool, LP can earn a pool share, interest, and other rewards.
Liquidity providers are essential to the functioning of Decentralized Exchanges (DEXs) as the application can facilitate exchange services smoothly using the available liquidity.
- Annual Percentage Rate (APR)
- Annual Percentage Yield (APY)
- Impermanent Loss
- Liquidity Mining
- Liquidity Provider
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