AMM
Automated Market Makers
Last updated
Automated Market Makers
Last updated
The AMM enables liquidity providers to earn fees by depositing both cryptocurrencies into the pool and earning a percentage of the trading fees generated by the protocol. This incentivizes liquidity provision and helps to ensure that the pool has sufficient liquidity for trading.
IMPORTANT
Providing liquidity comes with risk. One of which is impermanent loss. It is strongly advised to read up on impermanent loss before investing into an AMM pool.
Here are the steps to provide liquidity to AMM pools:
Congratulations! You have successfully provided liquidity and will earn incentives with every trade made on that pool you are subscribed.