Understanding Returns

WhiteSwap incentivizes users to add liquidity to pools by rewarding providers with fees on trades. Market making, in general, is a complex activity that has the risk of losing money (compared to just hodling) in the case of big directional moves of the underlying asset price.


To understand the risks associated with providing liquidity, you can read https://medium.com/@pintail/uniswap-a-good-deal-for-liquidity-providers-104c0b6816f2 to get an in-depth look at how to conceptualize a liquidity position.

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