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.

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