1. Why be an LP? What's the risk and reward?
This piece is written by @Edyta from Phezzan Discord server
Liquidity providers send various assets that they own to liquidity pools. They bring liquidity to the protocol.
Rewards:
Receiving fees from trades that occurs in the pools they contribute;
In some exchanges, LP can receive protocol native tokens;
In some exchanges, LP can receive LP tokens which they can stake if they want and get extra yield.
Risk
Can be exposed on impermanent loss;
Protocol might be hacked and assets can be stolen.
Can get liquidated (partially or completely).
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