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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