Liquidity providers are decentralized exchange users that deposit their cryptocurrency into liquidity pools. Liquidity pools are supplies of cryptocurrencies managed by decentralized exchanges to improve transaction efficiency. Exchanges compensate liquidity providers with transaction fees from activities that use a liquidity pool and distribute rewards according to how much currency a user has pooled. Liquidity providers’ funds are locked into the pool using smart contracts. Pools are permissionless, allowing anyone to contribute to the pool. Q: What is a Liquidity Provider? A: is a user who funds a liquidity pool with crypto assets that he or she owns to facilitate trading on the platform and earn passive income on her deposit. Knowledge provider：0xeddb693aaba0076ee0de3c822ae56d5c760e89b3 KNOW TO EARN is committed to building the world’s largest blockchain knowledge base and blockchain training academy. Through the interesting form of answering questions, more people can participate in the knowledge learning of the blockchain. You can see this knowledge now because there are a lot of people involved and contributing to the creation of blockchain knowledge. You can also be one of them and share up to 20% in bonuses. You dont need to spend any money, just use part of your spare time to participate in the creation of knowledge. Join our Telegram group to learn more. link: https://t.me/knowtoearn The content of Know to earn knowledge base is provided by users. If there is any infringement, please contact us to delete it as soon as possible. Original link：https://coinmarketcap.com/alexandria/glossary/liquidity-provider