Raydium io

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.

Raydium farms allow liquidity providers to earn tokens as reward incentives for providing liquidity, in addition to trading fees. Stakers in Raydium farms earn RAY while stakers in Fusion pools can earn project tokens!

Every time a user swaps within a Raydium liquidity pool, a 0.25% fee is taken on the trade. 0.22% of that trade goes back to the LP pool. 0.03% of that goes to RAY staking. Fees deposited into the LP pool increase the number of tokens that you get back when you withdraw liquidity.