🚀Pools and liquidity

What is a liquidity pool?

A liquidity provider, also known as a market maker, is someone who provides their crypto assets to a platform to help with decentralization of trading. In return they are rewarded with fees generated by trades on that platform, which can be thought of as a form of passive income. With this said, the crypto assets you provide are deposited in a liquidity pool. Also, it is very important to understand the risks associated to this function, specially the impermanent loss: “Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit.”

How do I provide liquidity?

Go to “Pool and click on “add liquidity”

Select the desired token pairs that you'd like to add to the pool (ROSE/YUZU in this case). Enter the amount and click first on “approve Yuzu”

Click on “supply”

Make sure everything is correct and then click on "confirm supply"