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.
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:
1. Navigate to Earn > AMM Pool
2. Choose a pool or token pair you want to provide liquidity
3. Input the amount you wish to invest to the pool
4. Confirm your subscription
Congratulations! You have successfully provided liquidity and will earn incentives with every trade made on that pool you are subscribed.