# Liquidity Providers

Liquidity Providers supply the necessary financial resources that enable the functioning of various trading challenges. Similar to providing liquidity on a DEX, they receive a portion of the profits according to their share in the Funded Pool. In the Dayhub ecosystem, Traders take on challenges that can lead to access to real financial resources, and liquidity providers play a crucial role in maintaining the stability and liquidity of these operations.

In the case of Live Trading, Liquidity Providers supply the funds that traders can use for Live Trading after passing the challenge. They contribute capital to the Funded Pool, which is used as a deposit on the perpetual DEX chosen by the Creator. Profits that go into the Funded Pool are distributed to Liquidity Providers, according to the share in the Pool.

In Sim Trading, the funds provided by Liquidity Providers create the Prize Pool, from which the profits of traders playing on the simulator are financed.&#x20;

The Creator decides whether there is an opportunity to provide liquidity to a given challenge.


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