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Trading Liquidity ~ How It Works (\u0026 how to profit from it)A liquidity provider (LP) is someone who supplies buy and sell orders to a decentralized finance (DeFi) project to increase market liquidity. Liquidity providers pool together their funds for others to use for swapping tokens. Intelligent computer programs known as smart contracts escrow and manage. Bitcoin liquidity providers ensure exchange platforms perform at top levels by enriching the market with assets and digital currency.
