The What’s Whom Are Liquidity Providers In Defi

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So in the crypto space, there is always that word that’s common across all board, weather decentralized exchanges(DEX) or Centralized exchanges(CEX), Defi to mention a few. So today we will be taking a look at that word or phrase if we can simply put LIQUIDITY PROVIDERS??? Liquidity providers(LP) in a short form are simply users that funds a liquidity pool with a pair of tokens in an exchange for a return of certain percentages off their trading fees and reward tokens.

For swaps for two tokens to be possible it has to be done on a decentralized exchange such as paraswap, uniswap, our every own beeswap present in the hive ecosystem which is the most used on the Hive blockchain and to mention some few others. If you are more conversant with crypto tasks on Layer3 platform and other platforms of whom are alike you should have come across a task instructing you to provide liquidity for a particular project or token, or performing a performing a token swap on a DEX platform. This should be all for the main time while we await a follow up post that should cover what and how to provide liquidity.

If you see this post on a Web2 ecosystem and you have no clue about what Leofinance is here is a brief definition;

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Also don’t forget in contributing to the pHBD-USDC pool, and from statistics it looks like we will be able to archive the set target in a few months, let’s do our own part in h growing the pHBD-USDC liquidity and also take out time to participate in the Leo power up challenge which happens every 15th of each month.

Let’s also connect on some of the web2 platform.
Twitter:Hironakamura

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