Key terms relating to liquidity provisioning include:

• Liquidity Provision: The act of providing tokens to a DEX liquidity pool to facilitate trading.
• Liquidity Pool: A smart contract holding two or more tokens that traders swap between.
• Algorithmic Market Maker (AMM): A smart contract-based trading mechanism that determines asset prices and enables decentralized trading.
• Arbitrageurs: Traders who exploit price differences between liquidity pools and other markets to profit while maintaining price stability.

To learn more about liquidity provisioning, explore our sections on:

• Liquidity Provisioning Overview
• How Liquidity Provisioning Works
• Why Provide Liquidity?
• Liquidity Provisioning Risks & Considerations
• Liquidity Provisioning Popular Platforms