Providing liquidity on THORChain creates an opportunity for holders of stagnant assets like BTC and BNB to earn a return. Liquidity Providers deposit their assets into pools. When other participants make swap assets and are charged fees, Liquidity Providers earn rewards. Liquidity Provider returns are affected by their share of the pool, the volume of swaps compared to the total value of the pool, fee size and something called Impermanent Loss.
THORChain ruthlessly maximises revenue for liquidity providers. It's been the express goal since the start. - Leena