Liquidity
Liquidity pools are place to pool tokens (which we sometimes call liquidity) so that users can use them to make trades in a decentralized way. These pools are created by users and decentralized apps (or Dapps, for short) who want to profit from their usage. To pool liquidity, the amounts a user supplies must be equally divided between two coins: the primary token (sometimes called the quote token) and the base token (usually ROSE or a stable coin). DuneSwap's liquidity pools allow anyone to provide liquidity at the following link: https://www.duneswap.com/exchange/pool. When they do so, they will receive DLP tokens (DuneSwap Liquidity Provider tokens). If a user deposited $DUNE and $ROSE into a pool, they would receive DUNE-ROSE DLP tokens. These tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point. Every time another user uses the pool to trade between $DUNE and $ROSE, a ~0.25% fee is taken on the trade. ~0.2% of that trade goes back to the LP pool.
Be aware of the risks of adding liquidity i.e. impermanent loss which may or may not be offset by fees and/or yield farming.
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