Liquidity pools have become increasingly popular among crypto enthusiasts for their potential to offer passive income. These pools, which allow users to contribute their assets to decentralized exchanges or platforms, provide a way to earn returns through transaction fees and sometimes additional rewards in the platform's native token https://paybis.com/blog/glossary/yield-farming/. For many, liquidity pools offer a more active approach to cryptocurrency investment compared to simply holding assets and waiting for price increases. Yield farming, a common strategy within liquidity pools, allows users to maximize their returns by providing liquidity to various platforms in exchange for incentives. With the added benefit of enabling smoother transactions within decentralized finance (DeFi), liquidity pools are viewed as an appealing avenue for diversifying crypto portfolios.