Consensus & Mining
Beginner
What is
Liquidity Provider?
A liquidity provider is someone who deposits tokens into a liquidity pool.
A liquidity provider is someone who deposits tokens into a liquidity pool. Liquidity providers take on price risk and are compensated with trading fees.
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Frequently Asked Questions
Questions about Liquidity Provider
Common questions about this topic
How to use Spectrum DEX on Ergo?
Connect your Nautilus wallet to Spectrum Finance, select tokens to swap, review the rate and slippage, then confirm. Spectrum uses AMM liquidity pools for instant trades. You can also provide liquidity to earn fees. All trades are atomic - they complete fully or not at all, with no front-running possible.
How-to
DeFi
How to provide liquidity on Ergo?
On Spectrum Finance, select a pool, deposit equal value of both tokens, and receive LP tokens representing your share. You earn a portion of all trading fees. Withdraw anytime by returning LP tokens. Be aware of impermanent loss if token prices diverge significantly.
How-to
DeFi
What is eUTXO and how does it work?
eUTXO (Extended Unspent Transaction Output) is Ergo's smart contract model that extends Bitcoin's UTXO with programmable logic. Each 'box' contains ERG, tokens, data registers, and a guarding script. Transactions consume boxes and create new ones, enabling deterministic execution, parallel processing, and no reentrancy attacks.
Explainer
Technology
How to escape financial repression with Ergo?
Ergo provides tools for financial sovereignty: self-custody with no third parties, censorship-resistant transactions via PoW, optional privacy with Sigma Protocols, and programmable money without permission. Unlike VC-backed chains, Ergo has no central authority that can freeze funds or comply with sanctions. Your keys, your coins, your freedom.
Solution
Philosophy