--- ### Liquidity Providers A natural question that arises from here is: **_Where do funds for the loan initial come from?_** The answer is a familiar one - `Liquidity Providers`! Much like we saw in `TSwap`, where a `Liquidity Provider` would deposit funds into a pool to earn fees, the same takes place with `flash loans`. A `Liquidity Provider` would deposit funds into a `flash loan` protocol, receiving some form of LP Token representative of their contribution. The `flash loan` protocol then accrues fees as people use `flash loans`, which increases the value of a `Liquidity Provider`'s representative allotment of the pool. 
A natural question that arises from here is:
Where do funds for the loan initial come from?
The answer is a familiar one - Liquidity Providers
!
Much like we saw in TSwap
, where a Liquidity Provider
would deposit funds into a pool to earn fees, the same takes place with flash loans
.
A Liquidity Provider
would deposit funds into a flash loan
protocol, receiving some form of LP Token representative of their contribution. The flash loan
protocol then accrues fees as people use flash loans
, which increases the value of a Liquidity Provider
's representative allotment of the pool.
Overview - Flash Loans & Liquidity Providers.' Emphasis on liquidity providers, flash loans, transaction fees, and benefits for depositors.
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