Just like when it comes to anything else finance/asset-related, liquidity is king. The exact same principle is valid in the world of decentralized finance. And as such, there is a special place for so-called liquidity providers or LPs in the proverbial ecosystem.


But what is a liquidity provider, anyway?


Simply put and as you will be about to find out through the video in greater detail, you too can be a liquidity provider if you own cryptocurrencies that you are willing to send to a pool. In return, you will be rewarded for deploying said capital through anything from fees to various tokens.


As complex as the DeFi equation may seem and sometimes is, understanding liquidity providers is actually remarkably simple. As long as you internalize the core concept behind the term and wrap your head around a few ideas, you should be good to go.


This video, for the most part, represents everything you need so as to "get" liquidity providers and their role in the decentralized finance space. Have fun learning and (hopefully) earning!

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