How Does The APY For Liquidity Pools Get Generated?
A liquidity provider is a stakeholder that provides liquidity (a liquidity pair) into a pool that is needed to run a decentralised exchange. He/She gets rewarded with a share of the trading fees generated with that pool and also THORChain's token emmision which is reflected in the APY.
Please note that a liquidity provider is exposed to impermanent loss.
Last modified 6mo ago