Is LP Safe? What Risks Are There?
The main risk associated with providing liquidity is the impermanent loss. You can read more about it in the "What is impermanent loss" FAQ bellow. Another risk is rug pulls, though these are most often related to illegitimate projects. The main risk associated with providing liquidity is the impermanent loss. THORChain covers you with ILP (Impermanent Loss Protection). You can learn more about it here: https://docs.thorchain.org/learn/understanding-thorchain#ilp-how-thorchain-protects-its-liquidity-providers https://docs.thorchain.org/frequently-asked-questions#will-i-have-impermanent-loss-protection-if-i-provide-liquidity-in-thorchain To learn more about pooling (strategies, understanding) on THORChain, we recommend you to join the LPU (Liquidity Provider University) discord.