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 What is Impermanent Loss? Impermanent loss is a temporary loss that you have to bear when the value of an asset you deposit in an AMM reduces as a liquidity provider. There is no hard and fast rule on how much an asset will subside in a pool.
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.
