Swaps within the pool pay liquidity providers transaction fees. The Bonfida market likewise trades on the Serum order book, with revenues from maker volume going to liquidity providers in the appropriate pool. You will earn Liquidity Provider tokens (LP tokens) when you supply liquidity to a pool, which reflects your proportional part of the pooled assets. You would obtain FIDA-USDC LP tokens if a user invested $FIDA and $USDC into a pool. A 0.25% charge is taken every time a user switches between $FIDA and $USDC within the pool. The LP pool receives 0.22% on that deal. FIDA stakes get 0.03% of that. Previously, each LP token was worth 1 USDC and 1 FIDA if there were 100 LP tokens representing 100 USDC and 100 FIDA. If one user exchanges 10 USDC for 10 FIDA and another exchange 10 FIDA for 10 USDC, the result is 100.022 USDC and 100.022 FIDA. When the LP tokens are removed, each one will be worth 1.00022 USDC and 1.00022 FIDA. Additionally, if the tokens you're LP-ing have a farm or a Fusion pool, you'll be able to earn heaps of additional reward emissions. If you are new to the notion of impermanent loss, I will highly advise that you gather detailed information about the entire process for better comprehension so that you can make a better decision.