What benefits do liquidity providers gain from participating in the liquidity pool of a DEX?

Table of Contents

What benefits do liquidity providers gain from participating in the liquidity pool of a DEX?

Options:

A) Transmedia fees

B) Transformer fees

C) Translate fees

D) Transaction Fees

Correct Answer:

The correct answer is Transaction fees.

Explanation

Transaction Fees: Liquidity providers earn transaction fees for providing liquidity to the pool. When traders make transactions, they pay fees, a portion of which is distributed to liquidity providers as an incentive for contributing to the liquidity pool. So, the correct answer is D. Transaction Fees.

Related

Share This Post: If you believe that this post can benefit someone else, kindly share it using the buttons below.


Discover more from Coursity

Subscribe to get the latest posts sent to your email.

Leave a Comment

Your email address will not be published. Required fields are marked *

Discover more from Coursity

Subscribe now to keep reading and get access to the full archive.

Continue reading

Scroll to Top
Martins ad network.