Crypto owners will receive LP tokens when they contribute an equal amount of tokens to a pool . These tokens represent their stake in that pool. These LP tokens will be minted when adding funds to the pool. They are then burned when removing the funds.
Read moreWhat does stake LP mean?
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 does LP mean in crypto?
LP Tokens and Crypto Liquidity Providers A key function of automated market maker platforms is the liquidity provider (LP) token. LP tokens allow AMMs to be non-custodial, meaning they do not hold on to your tokens, but instead operate via automated functions that promote decentralization and fairness.
Read moreWhat is LP farm?
LP farms. In an LP farm, a user deposits crypto into a smart contract that programmably facilitates a liquidity pool . Such a pool functions as a decentralized trading pair between two, or sometimes more, cryptocurrencies, and the trading is made possible by the crypto supplied by LPs.
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