Liquidity Providers (LPs) and Yield Farming
Liquidity providers (LPs) play a central role in Uniswap’s uniswap exchang by depositing tokens into liquidity pools. In return, they earn a portion of the transaction fees generated by the pool. Every time someone trades on Uniswap, a small fee (usually 0.3% of the trade) is paid to the LPs based on their share of