When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.
As an example, if you deposited AMPLE and BNB into a Liquidity Pool, you'd receive AMPLE-BNB LP tokens.
The number of LP tokens you receive represents your portion of the AMPLE-BNB Liquidity Pool.
You can also redeem your funds at any time by removing your liquidity.
Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool.
Whenever someone trades on AmpleSwap, the trader pays a 0.25% fee, of which 0.17% is added to the Liquidity Pool of the swap pair they traded on.
To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the AMPLE Farms, while still earning your 0.17% trading fee reward.
Providing liquidity is not without risk, as you may be exposed to impermanent loss.
"Simply put, impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet." - Nate Hindman