What is a liquidity provider (LP) and shall I be one?

In general, liquidity providers are those who earn passive income by providing tokens (liquidity) to a trading pool. They earn passive incomes by obtaining a share of the trading fees for each transaction in the pool to which they provide liquidity. On Iotabee, 5/6 of the trading fees go to liquidity providers.

Liquidity Provider Explained:

Earning Passive Income in DEX: Becoming a liquidity provider and its associated Gains & RisksMedium

The gains of being a liquidity provider - APR explained:

Being LP with Iotabee: Part I — APR explainedMedium

The riskes of being a liquidity provider - Impermanent Loss Explained

Being LP with Iotabee — Part II: Impermanent Loss explainedMedium