Market Trends DeFi Investment: How Do Liquidity Providers Make Money? Understanding how liquidity providers make money is critical for anybody considering participation in DeFi. This post will explain the dynamics that drive liquidity providers' profitability and the dangers and possibilities in the DeFi sector. Let's begin!
Defi Understanding Liquidity Pools in DeFi Liquidity refers to the ability to purchase and sell assets in the market without generating significant price changes. A liquidity pool is a supply of funds locked in a smart contract and used to facilitate decentralized trading, lending, and other activities.
