> For the complete documentation index, see [llms.txt](https://squirrel-wallet.gitbook.io/squirrel/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://squirrel-wallet.gitbook.io/squirrel/products/squirrel-wallet/liquidity.md).

# Liquidity

Users on Squirrel wallet can provide liquidity to pools. By placing your tokens into the a Liquidity pool, it means that NUTS and other tokens aren't hoarded or stuck in limbo. They will be used provide exchanges for other users within the liquidity pool. 

As a reward for providing the liquidity the Squirrel AMM will reward these users with liquidity provider (LP) tokens. 

![Specific Token Pairs can be selected to provide liquidity for, or users can simply import their own](https://693791841-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MhnleJ_usghAUyOavjV%2Fuploads%2FNWhn9gCgB5IDrlzUpE3h%2Fimage.png?alt=media\&token=19244085-01a1-4746-aab3-bc32582bfdd1)

![As a reward, LP tokens will be rewarded which can be used for more ways to earn or to redeem for NUTS](https://693791841-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MhnleJ_usghAUyOavjV%2Fuploads%2F5Cie3hiNrb5T2WiXFBEu%2Fimage.png?alt=media\&token=086b271b-c18e-44e5-84ff-4cb9c99aeba9)

At any point, users can withdraw the tokens to be used or transferred. This can be done as well on the Squirrel Wallet Liquidity Tab

![Simply fill-in the required amount of liquidity and the Squirrel AMM will return the tokens to the user](https://693791841-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MhnleJ_usghAUyOavjV%2Fuploads%2FlIW4vaT3VseuUYPdix4E%2Fimage.png?alt=media\&token=5b335ca4-b7ef-4626-9a8d-117b376834d4)

The Squirrel system allows users to easily and seamlessly earn rewards only possible on a decentralized system in providing liquidity to others.