Can LP Tokens Add Value to DeFi Lending Ecosystems?

Can LP Tokens Add Value to DeFi Lending Ecosystems?

Currently, there is over $41 billion Total Value Locked on DeFi protocols. Decentralized exchanges and lending protocols accumulate the lion's share of this TVL. However, as DeFi stands, unique possibilities exploiting the convergence of these two dominant markets are still to be leveraged. Liquidity providers (LPs) in Automated Market Maker (AMM) models like Uniswap and SushiSwap receive in their wallets 'pool shares', or LP tokens, in exchange for the tokens they deposit in the pools. Liquidity tokens represent a fractional …