What Is ‘Liquidity Provision’?

Liquidity provision is the act of depositing a pair of assets into a DeFi liquidity pool, making those assets available for trading on a decentralized exchange. In return for providing this liquidity, the provider earns a share of the trading fees generated by the pool.

What Is “Pool Hopping” and How Do PPLNS Schemes Mitigate It?
What Is the Difference between Approving a Token for a Protocol versus Depositing It into a Protocol’s Vault?
What Is the Role of the “Liquidity Provider” (LP) in an AMM?
How Do Liquidity Providers Earn Fees in a DEX?
What Is the Role of a ‘Liquidity Provider’ in an AMM?
What Is the Impact of a Very High Individual Hash Rate on the Pool’s Share Difficulty Setting?
What Is the Difference between a ‘Valid Share’ and an ‘Invalid Share’?
Why Is the Probability of a Single Share Being a Valid Block Extremely Low?