Liquidity providers play a crucial role in the protocol as they provide their funds in the selected liquidity pools and make the same available to borrow through flash loans.

The protocol has different pools, denominated in different assets (though there can exist multiple pools for the same asset), and anyone can create a xycLoans pool. Lenders earn interest on their deposits as the liquidity of the pools is used: this generates yield without any risk of capital losses (as flash loans never lose liquidity by design).

We are going to walk you through the different steps of becoming a liquidity provider and how you can manage your positions to start leveraging the lending opportunities offered by flash loans.

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