Someone who deposits assets into a pool so others can trade against them, earning a share of swap fees in return.
Last verified 13 September 2026 · written by the DexLadder team
What it means
Someone who deposits assets into a pool so others can trade against them, earning a share of swap fees in return.
Why it matters when you trade
An LP is a market maker with no discretion. The position is short volatility and long fee flow: calm, busy markets pay well, and violent trending markets extract more through impermanent loss than fees return. Judging an LP position by APR alone is the standard mistake — the honest measure is fees earned minus impermanent loss versus simply holding.
Worked example
A pool advertising 40% APR that suffered a 3x move in one leg can still have underperformed holding by a wide margin.
See it on live markets
DexLadder runs liquidity provider (lp) against live market and pool data, with simulated capital, so you can watch it act on an order instead of reading about it — no account, no wallet, nothing installed.