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 moreWhy would you stake LP tokens?
The LP tokens become your claim to your share of the pool’s assets. Holding these LP tokens allows you total control over when you withdraw your share of the pool without interference from anyone — even the Balancer platform.
Read moreWhat is an LP coin?
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 .
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 does PancakeSwap calculate LP tokens?
1 LP token = 1 CAKE + 1 BNB . Someone trades 10 CAKE for 10 BNB . Someone else trades 10 BNB for 10 CAKE.
Read moreHow is LP 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 more