The process of earning profits using Liquidity Providing (LP) is as follows:
Collect fees: As an LP provider, you will earn a portion of the trading fees as a reward when other traders conduct transactions on the DEX. These fees are distributed based on your share of the provided liquidity.
It is important to note that providing liquidity carries certain risks. Factors such as price fluctuations, smart contract vulnerabilities, and insufficient liquidity can impact your profits. Before participating in liquidity providing, ensure that you understand the associated risks and only invest funds you can afford to risk.😂 $BTC
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How to earn profits using LP?
The process of earning profits using Liquidity Providing (LP) is as follows:
Collect fees: As an LP provider, you will earn a portion of the trading fees as a reward when other traders conduct transactions on the DEX. These fees are distributed based on your share of the provided liquidity.
It is important to note that providing liquidity carries certain risks. Factors such as price fluctuations, smart contract vulnerabilities, and insufficient liquidity can impact your profits. Before participating in liquidity providing, ensure that you understand the associated risks and only invest funds you can afford to risk.😂 $BTC