# Liquidity Providers

The liquidity provider is the entity/individual that provides the tokens belonging to the liquidity pool. The liquidity provider receives a percentage from the trading fees that users pay when they place a trade.

For example, the [**CLAY/BTSG pool**](https://app.sinfonia.zone/pools/751) has per-trade fees of 0.3%. The amount is charged to the user for the transaction and is distributed among all providers according to their share. If a liquidity provider contributed 10% of the total share of the pool, for every $100 commission it will receive $10 profit.

The transaction fees are distributed proportionally to all the liquidity providers in the pool, so the more crypto assets you stake the more fees you'll earn.

In simpler terms, as a liquidity provider, you’ve sowed the seeds and are waiting for the harvest. Plus, you earn a trading fee whenever a trader buys or sells the asset you’ve pooled for and for [**Bonding your LPTs**](https://docs.sinfonia.zone/italian/yield-farming/bonding-lp-tokens)**.**


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