Liquidity Provider

A liquidity provider is somebody who submits assets of a trading pair on an exchange for market-making. This has become popular in the crypto scene with the launch of the Ethereum based exchange, Uniswap. For example on the Ethereum <> Chainlink pair you can submit the equivalent of $1000 on both assets, so a total of $2000, to the pool. In exchange, you get a pro-rato claim token of that pool. All the trades on that pool are shared with