🎯Liquidity V2

On zkSync labs, liquidity providers can deposit their tokens into liquidity pools and earn a share of the trading fees generated by the exchange. By doing so, they help to improve the overall liquidity of the exchange and facilitate trading for other users.

However, providing liquidity also comes with certain risks, including impermanent loss. Impermanent loss occurs when the price of the tokens in the liquidity pool changes compared to the price of the tokens in the market. This can result in a loss for the liquidity provider, although the loss is not permanent and can be offset by the trading fees earned over time.

It is important for liquidity providers to carefully consider the risks and rewards before depositing their tokens into a liquidity pool. Zksync labs provides educational resources and calculators to help users make informed decisions about providing liquidity.