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When you provide liquidity to a trading pair on AsgardX Exchange, you become a Liquidity Provider (LP) and earn rewards in the form of a proportionate share of the trading fees collected whenever someone trades on the pair using your liquidity pool. AsgardX DEX will distribute 60% of the trading fees collected to Liquidity Providers. The more liquidity you provide, the more fees you can earn over time. However, providing liquidity comes with risks. One of the primary risks is impermanent loss, which occurs when the value of your holdings in the pool decreases compared to holding the assets separately. Impermanent loss can be caused by a number of factors, such as price volatility and arbitrage opportunities. Therefore, it is important to carefully consider the risks and rewards before deciding to become a Liquidity Provider on AsgardX Exchange.
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