On Decentralized Exchanges (DEXes), swaps between tokens are executed using an AMM (Automated Market Maker).

Because these platforms are decentralized, anyone can deposit tokens and provide liquidity to the platform, which generates trade fees for liquidity-providing investors. In addition, protocols incentivize certain liquidity pairs with additional 'farming rewards' to encourage investors to concentrate liquidity in these pairs. The greater (or deeper) the liquidity, the closer users can exchange their tokens at fair market price (without being heavily affected by price impact).

That way, the protocol will deepen their liquidity for those tokens, allowing DeFi users to swap tokens at fair market price, while investors can earn trade fees and farming rewards.

How to provide liquidity:

1. Check the Garden (farms) on Lif3.com to view the incentivized liquidity pool (LP) pairs and farming APRs (rewarded in $LSHARE).

2. If you do not have one or both of the tokens in the LP pair, go to Lif3 Swap DEX and trade for the token(s) needed.

3. Deposit both tokens on the Liquidity page. You will know you have successfully provided liquidity when you've received LP tokens.

* Note: LP tokens are receipt tokens that represent your share of the pool. Do not transfer these to any wallets that aren't yours, or you will lose your funds!

4. Once your LP tokens are in your wallet, go back to the Garden. Find your LP pair, make the necessary Approval transactions, and deposit.

5. Voila! Once your deposit is made, you will immediately start earning rewards (visible on the UI once a minimum of 0.0001 LSHARE has been earned).

Congratulations on successfully providing liquidity! Now, sit back and relax while you make those passive gains.