I quickly want to point out that we've recently seen a surge in uniswap/bancor based "liquidity pools" (all projects copying each other). The main idea here is that you can lock up your crypto in a smart contract - which is considered "secure" as to no one can steal it (audited code by reputable companies and such). If true the risk is very small with things like impermanent loss, which doesn't apply to all pools.

The idea here is that your money is provided liquidity and you'll get paid a portion of the fees as well as some new token which can have a very high value (for a fleeting moment).

This is important to realize when looking at the crazy marketing around these projects, if it's based on uniswap you can reasonably sure your principal won't get stolen - regardless of the scammy and weird marketing.