# Providing Liquidity explained

On a Camelot, a liquidity pool is a crowdsourced pool of tokens locked in smart contracts and used to facilitate trades between the assets. Automated market maker (AMM) allow digital assets to be traded in an automatic and permissionless manner through liquidity pools, replacing traditional markets of buyers and sellers

{% hint style="info" %}
Liquidity providers will receive a portion of each transaction fee and additional incentives if they are provided for the LP pair
{% endhint %}

{% content-ref url="/pages/bUpT8r9HpbrwP6FY7NhC" %}
[V2 Add Liquidity](/get-started/castle-tutorials/step-by-step-guides/v2-add-liquidity.md)
{% endcontent-ref %}

{% content-ref url="/pages/cq0feenED8uL3h0Wp5Vr" %}
[V3/V4 Add Liquidity (concentrated)](/get-started/castle-tutorials/step-by-step-guides/v3-v4-add-liquidity-concentrated.md)
{% endcontent-ref %}


---

# 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.camelot.exchange/get-started/castle-tutorials/providing-liquidity-explained.md?ask=<question>
```

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.