RE: Steemitblog: Deep Dive into DeFi: How much can I earn being a Liquidity Provider?
Hello @shortsegments
The returns on liquidity provision is really amazing. It's one really cool way to multiply one's income. Talk about risk and I'll say you almost have nothing to loose. One can start with a small amount they can spare and then use the profits to re-invest. It's something worth considering. How to raise capital to start liquidity providing shouldn't be much of a problem for anyone.
Sometimes, we meet our financial goals in other businesses outside crypto and even if we decide to re-invest profits, sometimes we'll usually not to invest all the profits in one business. The remainder in this case can be used to start out liquidity providing.
Also, one can save a little money from his regular income to try out liquidity provision. When the amount becomes significant, he person can then invest it.
It isn't that difficult is it? After all, it's business and another profitable source of income.
Very true. We are simply holding our assets in the smart contract, in an illiquid form, so it’s safer then in our wallet as liquid form. Most hold their tokens in their wallets earning nothing.