Ok, many people. Nevertheless, all people want to earn money by providing liquidity. One thing that is undervalued is the reason WHY to provide liquidity. Like centralized exchanges, decentralized exchanges depend on liquidity. Without a certain amount of assets on Binance, Coinbase or Kraken, no one would be able to buy cryptocurrencies. Same states for decentralized exchanges. When founding a centralized exchange, it would be sufficient to get people to provide either side of the assets, and the exchange would work due to order books. Decentralized exchanges, on the other hand, rely on automated market makers (AMMs). The main concept is to have a pool that keeps two sides of assets that are tradable (such as ETH & BTC). Thus, liquidity providers need to provide both sides. This approach comes with certain risks. One of the most known ones is Impermanent Loss. Interestingly, most people providing liquidity do not really get it. Simply put, an impermanent loss (IL) is a difference between holding tokens in an AMM and holding them in a wallet.