What are liquidity tokens?

Liquidity provider tokens or LP tokens are tokens issued to liquidity providers on a decentralized exchange (DEX) that run on an automated market maker (AMM) protocol . Uniswap, Sushi and PancakeSwap are some examples of popular DEXs that distribute LP tokens to their liquidity providers.

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How do I get liquidity tokens?

Go to CoinMarketCap and search for Liquidity Accelerator Token. Tap on the button labeled “Market” near the price chart . In this view, you will see a complete list of places you can purchase Liquidity Accelerator Token as well as the currencies you can use to obtain it.

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How do liquidity tokens work?

LP tokens represent a crypto liquidity provider’s share of a pool, and the crypto liquidity provider remains entirely in control of the 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.

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