liquidity provider

noun

A decentralized exchange user who funds a liquidity pool with tokens that they own to facilitate trading on the platform and earn passive income on their deposit.

Meanings

nounliquidity provider (plural liquidity providers)

plural liquidity providers · alternative LP

  1. businessA decentralized exchange user who funds a liquidity pool with tokens that they own to facilitate trading on the platform and earn passive income on their deposit.
  2. economicsSynonym of market maker.

    Synonyms: market maker

Synonyms & antonyms

nounSynonym of market maker.

Cite this entry
APA

liquidity provider. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/liquidity%20provider

MLA

“liquidity provider.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/liquidity%20provider. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “liquidity provider,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/liquidity%20provider.

Source: liquidity provider on Wiktionary, CC BY-SA 4.0.