Providing Liquidity: Your Contribution to DeFi

Providing liquidity is a key function in the Uniswap ecosystem. By mid-2025, any user can become a liquidity provider (LP) by adding an equal amount of two tokens to a pool. In return for their contribution, LPs receive liquidity tokens that represent their share in the pool. In exchange, they receive a portion of the trading fees paid by traders. This creates passive income and incentivizes users to support the platform's operation. Providing liquidity is a way for users to actively participate in DeFi while earning from it. #UNI $UNI