What’s the benefit of providing liquidity on Stabull DEX?

The primary reason to provide liquidity on the Stabull DEX is to earn trading fees. Liquidity providers earn a share of the trading fees generated by the exchange. These fees are typically a percentage of the transaction volume and are distributed proportionally to liquidity providers based on their contribution to the pool. 

By providing liquidity, users can earn a passive income stream from trading activity on the exchange. Being an LP on an AMM like Stabull is a straightforward way to earn passive, delta-neutral income from crypto. It has been disruptive because these sorts of yield opportunities on asset holdings were previously only accessible to institutions and professional market makers. 

By providing liquidity to a pool, users effectively become market makers, helping to maintain stable prices and reduce price slippage for traders. Market makers play a crucial role in ensuring liquidity and efficiency in the market. The more liquidity a platform like Stabull has, the better the user experience is and the more likely the platform is to retain users. 

Providing liquidity to a decentralized exchange helps it grow, bootstrap, foster community engagement and boost participation. 

Many decentralized exchanges have vibrant communities of users who are actively involved in governance, protocol upgrades, and decision-making processes. Liquidity provides a key role in nurturing these ecosystems giving users a primary reason to return to the platform.