> For the complete documentation index, see [llms.txt](https://agodefi.gitbook.io/ago-defi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://agodefi.gitbook.io/ago-defi/services/liquidity-providing-amm.md).

# Liquidity providing (AMM)

As part of our comprehensive suite of decentralized financial services, Ago will empower you to participate in liquidity providing, which follows the model of an Automated Market Maker (AMM). Leveraging the Ago DEX, you can contribute liquidity to various liquidity pools directly from your crypto wallet. 

The implementation of Ago's liquidity-providing services is based on the principle of democratizing access to liquidity provision and enhancing the efficiency of decentralized swaps. By enabling you to become a liquidity provider, Ago fosters a more dynamic and liquid ecosystem, facilitating seamless and secure transactions for all users. 

At the core of this service is the utilization of AMM algorithms to automatically determine token prices and execute trades within liquidity pools. You can contribute your tokens to custom pools on the Ago DEX, thereby providing liquidity and earning fees proportional to your contributions.

By integrating liquidity-providing services into the ecosystem, we empower you to contribute to the liquidity and efficiency of the platform while earning passive income from swap fees. This democratized approach to liquidity provision not only enhances the ecosystem's liquidity overall but also strengthens the resilience and sustainability of decentralized finance (DeFi) as a whole.

[<br>](https://agodefi.gitbook.io/ago-defi/services/social-trading)


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