# What is Liquidity Staking? Most decentralized exchanges (DEXs) operate by having liquidity providers deposit an equal dollar value of at least two different cryptocurrencies into a liquidity pool, this is known as **Liquidity Staking**. Traders then use this pool to swap between those cryptos. Each time a trade occurs, a small percentage of the total trade volume is taken as a fee, which is then distributed proportionally among all the liquidity providers in that pool. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.blacksail.finance/faq/what-is-liquidity-staking.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.