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17 Jun 2025
8

πŸ” What do LPs (liquidity provider ) actually do?

1. Deposit two tokens into a liquidity pool in equal value
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 Example: 1 ETH and 2,000 USDC

2. These tokens are locked in a smart contract

3. Traders use the pool to swap between those tokens

4. LPs earn a % of every trade (as a feeπŸ’―πŸ’―πŸ’―

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