1 LP token

Liquid Tokens continuously recalculate their price in relation to their collateral token by maintaining a fixed ratio between the Liquid Token’s total value and the value of its reserve pool . This ratio, known as the “reserve ratio” (RR), can be used to maintain the price stability of a Liquid Token.

For example, if you contribute $10 USD worth of assets to a Balancer pool that has a total worth of $100, you would receive 10% of that pool’s LP tokens . You receive 10% of the LP tokens because you own 10% of the crypto liquidity pool. The LP tokens become your claim to your share of the pool’s assets.

Checking LP Value on Polygon Chain (MATIC) From the Quickswap page, click into the LP . The Matic explorer gives you info on the total LP constituent tokens and a link to the LP contract, which saves a lot of clicking.

Uniswap uses a pricing mechanism called the ‘constant product market maker model’. The formula (x * y = k) is used to determine the pricing for the pair.