
What is Liquidity Provision in DeFi?
Liquidity provision is fundamental to both traditional finance (TradFi) and decentralized finance (DeFi). It ensures markets run smoothly, enabling assets to be traded efficiently. In the world of DeFi, liquidity provision has been revolutionized by decentralized exchanges (DEXs) and lending protocols, which function without intermediaries.
This article examines liquidity provision,