𝗪𝗵𝘆 𝗗𝗼 𝗣𝗲𝗼𝗽𝗹𝗲 𝗚𝗲𝘁 𝗣𝗮𝗶𝗱 𝘁𝗼 𝗛𝗲𝗹𝗽 𝘄𝗶𝘁𝗵 𝗕𝗹𝗼𝗰𝗸𝗰𝗵𝗮𝗶𝗻 𝗧𝗿𝗮𝗱𝗶𝗻𝗴?
𝗪𝗲 𝘄𝗶𝗹𝗹 𝗲𝘅𝗽𝗹𝗮𝗶𝗻 𝘆𝗼𝘂 𝗹𝗶𝗸𝗲 𝘆𝗼𝘂 𝗮𝗿𝗲 𝟱!
Imagine you're at a big toy swap event. You have a bunch of action figures, and your friend has a pile of toy cars. To make it easier for everyone to trade, you both put your toys in a big basket so others can grab what they want and leave their own toys in exchange. Now, because you and your friend are making trading easy for everyone, the organizer of the event gives you some candy as a thank-you.
In the world of blockchain and decentralized finance (DeFi), this is similar to what happens with liquidity providers. Instead of toys, they put in tokens (think digital money) into a "basket" called a liquidity pool. This pool makes it easy for people to trade their tokens without needing a middleman, like a bank.
But why would anyone do this? Just like you got candy for helping out at the toy swap, liquidity providers get paid for their help too! They earn rewards, often in the form of extra tokens, for keeping the pool full and making trading easier. These rewards can grow over time, giving people an incentive to keep their tokens in the pool.
So, in simple terms, liquidity providers get rewarded for making the blockchain world run more smoothly, helping others trade without any fuss, and in return, they earn a bit extra for their efforts.
You can do the same with SwissDLT check out the tutorials here https://lnkd.in/dq7Z4PTy