# Introduction

## What is the $FYN Liquidity Program?

The $FYN Liquidity Program is an initiative designed to improve the liquidity of $FYN. It consists of the following core actions:

1. To increase $FYN accessibility by creating a **Liquidity Pool**¹ on the widely recognized [Uniswap](https://app.uniswap.org/tokens/polygon/0x3b56a704c01d650147ade2b8cee594066b3f9421) decentralized exchange&#x20;
2. To improve $FYN liquidity by encouraging community members to provide $FYN liquidity on [Uniswap](https://app.uniswap.org/pools)

## What problems do a lack of liquidity cause?

:x: **Dampened User Adoption**

New users entering the Affyn ecosystem may encounter difficulty acquiring $FYN due to a lack of trading depth. This can lead to frustration and impede user onboarding, ultimately slowing down ecosystem growth.

:x: **Limited Price Discovery**

Low liquidity makes it challenging to accurately determine the fair market value of $FYN. This creates uncertainty for potential investors and users, further hindering adoption and ecosystem expansion.

:x: **Stifled Utility and Engagement**

Low liquidity restricts the potential for users to fully utilize the diverse functionalities of $FYN within the Affyn ecosystem, stifling overall user engagement and satisfaction.

:x: **Negative Market Perception**

Persistently low liquidity can send negative signals to the wider cryptocurrency market, raising concerns about the stability and long-term viability of the Affyn ecosystem. This can harm investor confidence and deter potential partners, further limiting growth opportunities.

## **Why Should I Provide $FYN Liquidity?**

:white\_check\_mark: **Earn Fees from Trades**

Liquidity providers earn a share of the fees generated from trades that occur in the liquidity pool. Uniswap charges a fee for each trade, and this fee is distributed among liquidity providers based on their share of the pool.

:white\_check\_mark: **Potential for Capital Gains**

Liquidity providers may experience additional capital gains on top of the trading fees earned.

:white\_check\_mark: **Earn Liquidity Provision Bonus**

To kickstart the program, we offered [exclusive rewards](https://docs.affyn.com/en/usdfyn-liquidity-program/liquidity-provision-bonus) to users contributing liquidity to the official Uniswap V3 Liquidity Pool during the campaign period.

{% hint style="info" %}
Note: The Liquidity Provision Bonus campaign has ended.
{% endhint %}

***

*¹ A liquidity pool is a group of tokens that are locked in a smart contract and used for trading between assets on a decentralized exchange*


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