Golden Recursion Inc. logoGolden Recursion Inc. logo
Advanced Search

Liquidity provider

A liquidity provider is a man who invests his money (fiat or cryptocurrency) into a liquidity pool and is receiving passive income.

All edits

Edits on 23 Feb, 2022
Denis Shvatskii
Denis Shvatskii edited on 23 Feb, 2022
Edits made to:
Related Topics (+1 topics)
Related Topics
Edits on 4 Feb, 2022
Daniil Karelin
Daniil Karelin edited on 4 Feb, 2022
Edits made to:
Article (+25/-13 characters)
Article
Yield farming
Additional passive income
Edits on 31 Jan, 2022
Daniil Karelin
Daniil Karelin edited on 31 Jan, 2022
Edits made to:
Article
Article

Liquidity providers can earn more with Yield farming. It’s an additional way that helps the liquidity pools be sure that you won't take off money anytime. After a man became the provider, he gets loyalty points (LP-tokens). These tokens he can exchange into cryptocurrency (thus take off his investments) or put them in yield farming. It's a place where tokens freeze and you can’t take off it for a definite period of time. For this, you will get passive income. It looks like a long-term bank deposit.

Daniil Karelin
Daniil Karelin edited on 31 Jan, 2022
Edits made to:
Description (+133 characters)
Article (+1063 characters)
Categories (+1 topics)

Liquidity provider

A liquidity provider is a man who invests his money (fiat or cryptocurrency) into a liquidity pool and is receiving passive income.

Article

The liquidity provider is a part of DeFi sectors and services the liquidity pool. The liquidity pool can compare with currency exchanges where people can buy or sell foreign currency. But the liquidity pool works with cryptocurrency.

How it works:

Every liquidity pool needs a stock of money for exchange. And the liquidity provider gives it. For this, they get an interest income from every transaction. The main problem for liquidity providers is looking pool that works with many clients. It’s difficult because not all pools publish reports.

Yield farming

Liquidity providers can earn more with Yield farming. It’s an additional way that helps the liquidity pools be sure that you won't take off money anytime. After a man became the provider, he gets loyalty points (LP-tokens). These tokens he can exchange into cryptocurrency (thus take off his investments) or put them in yield farming. It's a place where tokens freeze and you can’t take off it for a definite period of time. For this, you will get passive income. It looks like a long-term bank deposit.

Categories
Edits on 29 Jan, 2022
Dan Filatov"Created via: Web app"
Dan Filatov created this topic on 29 Jan, 2022
Edits made to:

 Liquidity provider

A liquidity provider is a man who invests his money (fiat or cryptocurrency) into a liquidity pool and is receiving passive income.

Golden logo
By using this site, you agree to our Terms & Conditions.