<ul><li>Decentralized finance (DeFi) relies on liquidity pools to enable token swaps, lending, and borrowing.</li><li>Low liquidity on decentralized exchanges leads to slippage, affecting token prices during trades.</li><li>Providing liquidity can be profitable due to rewards from transaction fees on DEX platforms.</li><li>Users receive liquidity provider tokens representing their share of the pool, which can be used for additional yield in DeFi.</li><li>Platforms like Uniswap, SushiSwap, and others offer opportunities for liquidity provision.</li><li>Investors need to balance rewards and risks when choosing liquidity pools to participate in.</li><li>AI agents like Giza Protocol's ARMA help optimize yield farming by monitoring multiple DeFi protocols.</li><li>Liquidity provision carries risks such as impermanent loss due to asset price fluctuations.</li><li>Bull markets offer better opportunities for liquidity providers, while bear markets pose challenges.</li><li>Providing liquidity is essential for DeFi protocols, offering passive income opportunities with associated risks.</li></ul>

Passive Income in DeFi: A Guide to Liquidity Provisioning on DEX Platforms

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