What a provider puts in and gets back
A pool needs tokens on both sides before anyone can swap. The people who deposit them are liquidity providers, and the pool pays them the swap fee on every trade, in proportion to their share. In the pool from lesson 2, each trade left 0.3 percent of what was put in behind for the providers.
You deposit both tokens in the pool’s current ratio, say 1 ETH and 2,000 USDC when ETH is $2,000, and you receive a receipt token that records your share. When you withdraw, you hand the receipt back and get your share of whatever the pool holds then, plus your share of the fees.
Whatever the pool holds then is the catch, because the pool’s holdings change with every trade.
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