Liquidity is essential for an exchange to grow. However, the essence of decentralization can only be retained if the source of liquidity within the platform are its users too. Contributing to the liquidity pool has more than a few reasons, but at the top of it is to earn an additional passive income and true liberation of a platform. To easily facilitate features like swapping and trading, liquidity is of paramount importance as it contributes to the reduction of cost in the process. Moreover, being a liquidity provider can enable you to earn additional rewards in the form of LP tokens.