# Liquidity Provision

Plit Protocol offers several options for liquidity provision, including the ability to provide liquidity for small-cap tokens, stablecoins, and even pegged tokens. The platform's smart contract design and functionality enable users to easily deposit tokens and earn APY on their investments.

To provide liquidity on Plit Protocol, users simply need to connect their wallet and select the desired token pair. They can then deposit an equal value of each token into the liquidity pool and receive LP tokens in return. These LP tokens can be used to withdraw their share of the liquidity pool or can be traded on supported exchanges.

Plit Protocol also integrates with multiple decentralized exchanges, including Uniswap, SushiSwap, and Balancer, to provide users with a wider range of liquidity options. Users can easily adjust their liquidity positions or withdraw their funds at any time, making it a flexible and user-friendly liquidity provision solution.

Additionally, Plit Protocol's smart contract design ensures that impermanent loss is minimized for liquidity providers. In the event that the price of one token in the pair increases or decreases significantly, the liquidity provider will not suffer significant losses. Instead, the project itself will absorb the loss and provide liquidity to their pair.

Overall, Plit Protocol's liquidity provision solutions offer users a flexible, user-friendly, and secure way to earn APY on their investments while minimizing risks such as impermanent loss.

{% content-ref url="liquidity-provision/smart-contract-design-and-functionality" %}
[smart-contract-design-and-functionality](https://plit-protocol.gitbook.io/plit-protocol/introduction/liquidity-provision/smart-contract-design-and-functionality)
{% endcontent-ref %}

{% content-ref url="liquidity-provision/providing-liquidity-on-plit-protocol" %}
[providing-liquidity-on-plit-protocol](https://plit-protocol.gitbook.io/plit-protocol/introduction/liquidity-provision/providing-liquidity-on-plit-protocol)
{% endcontent-ref %}

{% content-ref url="liquidity-provision/integrating-with-multiple-decentralized-exchanges" %}
[integrating-with-multiple-decentralized-exchanges](https://plit-protocol.gitbook.io/plit-protocol/introduction/liquidity-provision/integrating-with-multiple-decentralized-exchanges)
{% endcontent-ref %}

{% content-ref url="liquidity-provision/handling-liquidity-withdrawals-and-adjustments" %}
[handling-liquidity-withdrawals-and-adjustments](https://plit-protocol.gitbook.io/plit-protocol/introduction/liquidity-provision/handling-liquidity-withdrawals-and-adjustments)
{% endcontent-ref %}
