Token FAQ

Liquidity providers play a crucial role in decentralized finance by supplying assets to liquidity pools, enabling seamless trading and reducing slippage. In the context of the Overlay Protocol, they enhance market efficiency and stability, facilitating transactions while earning rewards for their contributions. Understanding their function is essential for grasping DeFi dynamics.

Liquidity providers play a crucial role in <a data-auto-add="True" href="/feed/faq/categories/Decentralized%20Finance%20Defi" rel="noopener noreferrer" target="">decentralized finance</a> by supplying assets to liquidity pools, enabling seamless trading and reducing slippage. In the context of the Overlay Protocol, they enhance market efficiency and stability, facilitating transactions while earning rewards for their contributions. Understanding their function is essential for grasping DeFi dynamics.

What are liquidity providers and how do they contribute to the Overlay Protocol?

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