# AMM

The AMM enables <mark style="color:blue;">**liquidity providers**</mark> 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.

{% hint style="danger" %}
IMPORTANT

Providing liquidity comes with risk. One of which is [**impermanent loss**](https://www.youtube.com/watch?v=8XJ1MSTEuU0\&feature=youtu.be)**.** It is strongly advised to read up on impermanent loss before investing into an AMM pool.
{% endhint %}

Here are the steps to provide liquidity to AMM pools:

### 1. Navigate to Earn > AMM Pool

<figure><img src="https://2415010777-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FjysAcUs3GARrxHWSE1ej%2Fuploads%2FeLBoYJYnRfPyGZQzP3KP%2F14711EE8-8C4F-419B-B039-9D26FC834F43.png?alt=media&#x26;token=67348587-ea52-4dd3-b42e-42d5d7981e5d" alt=""><figcaption></figcaption></figure>

### 2. Choose a pool or token pair you want to provide liquidity

<figure><img src="https://2415010777-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FjysAcUs3GARrxHWSE1ej%2Fuploads%2Fe3jwRgHpTyqJyyWDdRc3%2FIMG_0767.png?alt=media&#x26;token=30b516ef-b34b-4b7d-853d-8ce4a02d1f3f" alt=""><figcaption></figcaption></figure>

### 3. Input the amount you wish to invest to the pool

<figure><img src="https://2415010777-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FjysAcUs3GARrxHWSE1ej%2Fuploads%2FJmkci43Yyh77LUd1rhze%2FIMG_0769.png?alt=media&#x26;token=5c249d27-0674-402f-be4d-97496a8c3489" alt=""><figcaption></figcaption></figure>

### 4. Confirm your subscription

<figure><img src="https://2415010777-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FjysAcUs3GARrxHWSE1ej%2Fuploads%2F0CcizOL6kbXxgR2QEcDf%2FIMG_0770.png?alt=media&#x26;token=eef9e4e6-9fbf-4364-ad62-c14270a89acd" alt=""><figcaption></figcaption></figure>

{% hint style="success" %}
Congratulations! You have successfully provided liquidity and will earn incentives with every trade made on that pool you are subscribed.
{% endhint %}