LP Staking is the process by which you transfer your tokens to blockchain maintenance in exchange for Rewards in the form of new tokens . In simple words — you “deposit” your tokens and receive Rewards on top of them.
Read moreHow do LP tokens earn yield?
LP token staking Providing liquidity requires staking equal values of different tokens, which generates a LP token. This new LP token is then staked in a new pool in order to earn a yield.
Read moreWhat is LP token farming?
Unlike Syrup Pools, Farms require you to stake two tokens to get LP Tokens, which you then stake in the Farm to earn rewards . This lets you earn CAKE while still keeping a position in your other tokens!
Read moreHow is LP price determined?
It is a decentralized exchange (DEX) where anyone can provide liquidity by depositing a token pair of 50-50 ratio inside it. There are no order books and the price is determined by the constant product formula: x * y = k .
Read moreHow are liquidity tokens calculated?
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.
Read moreHow are pool tokens calculated?
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.
Read moreHow do I find out how much my LP tokens are worth?
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.
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