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Liquidity provision is a popular way to earn passive income in the DeFi (Decentralized Finance) space. Here's a comprehensive guide on how to earn from liquidity provision:

What is Liquidity Provision?

Liquidity provision involves supplying cryptocurrencies to a liquidity pool, which is used to facilitate trades on decentralized exchanges (DEXs) or automated market makers (AMMs).

Types of Liquidity Pools:

1. Uniswap-style pools (e.g., Uniswap, SushiSwap)
2. Curve-style pools (e.g., Curve Finance)
3. Balancer-style pools (e.g., Balancer)

How to Earn from Liquidity Provision:

1. Trading Fees: Earn a percentage of trading fees generated by the liquidity pool.
2. Liquidity Mining: Receive tokens as rewards for providing liquidity.
3. Interest: Earn interest on deposited assets.
4. Token Appreciation: Benefit from potential token price increases.

Popular Liquidity Provision Platforms:

1. Uniswap
2. SushiSwap
3. Curve Finance
4. Balancer
5. Aave
6. Compound
7. Yearn.finance

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