# 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="/files/l3e0naFgh8YgJHFELTtF" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/Z6t73u7gTcXTHmjgTGH0" alt=""><figcaption></figcaption></figure>

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

<figure><img src="/files/lpJCI0tsBfsgnUFbfDZ8" alt=""><figcaption></figcaption></figure>

### 4. Confirm your subscription

<figure><img src="/files/5EKN10rVQ0JJ0QItxnvI" 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 %}


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