--- ### 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. ::image{src='/security-section-6/6-liquidity-providers/liquidity-providers1.png' style='width: 100%; height: auto;'}
Overview - Flash Loans & Liquidity Providers.' Emphasis on liquidity providers, flash loans, transaction fees, and benefits for depositors.
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