Liquidity Pools
By participating in liquidity pools, you have the opportunity to contribute your tokens and provide liquidity. When you add your tokens to a liquidity pool, you receive Liquidity Pool (LP) tokens in return.
As an example, if you deposited FUN and USDT into a liquidity pool, you would receive FUN-USDT LP tokens.
The number of LP tokens you receive represents your portion of the FUN-USDT liquidity pool.
You can also redeem your funds at any time by removing your liquidity.
Providing liquidity is not without risk, as you may be exposed to impermanent loss❗️
It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees.
For example, whenever someone trades FUN, the trader pays a 0.35% fee.
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