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  • LP Tokens
  • Impermanent Loss
  1. Tokenomics
  2. LUCHOW

Liquidity Pools

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Last updated 2 years ago

​ When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.

LP Tokens

As an example, if you deposited LUCHOW and BNB into a Liquidity Pool, you'd receive

LUCHOW-BNB LP tokens.

The number of LP tokens you receive represents your portion of the LUCHOW-BNB Liquidity Pool.

You can also redeem your funds at any time by removing your liquidity.

Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss.

“Simply put, impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.” - Nate Hindman