@isabel86gallaghe

Liquidity providers (LPs) are vital to DeFi ecosystems, ensuring markets function smoothly. By locking assets in pools, LPs enable trading, lending, and swaps. Projects reward this because liquidity attracts users, boosts adoption, and stabilizes token ecosystems. For farmers, providing liquidity not only generates fees but also strengthens eligibility for future airdrops. Historical campaigns, like Uniswap and dYdX, heavily favored LPs due to their role in ecosystem growth. While LPing carries risks like impermanent loss, its strategic benefits often outweigh downsides. Active liquidity provision across multiple protocols remains one of the strongest signals for securing large airdrop allocations.

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