Liquidity Pools

This is where you get LP Tokens and earn Fees!

When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.

LP Tokens

As an example, if you deposited Rissotto and BNB into a Liquidity Pool, you'd receive RSOT-BNB LP tokens.

The number of LP tokens you receive represents your portion of the RSOT-BNB Liquidity Pool.

You can also redeem your funds at any time by removing your liquidity.

Liquidity Providers earn trading fees

Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool.

Whenever someone trades on, the trader pays a X,XX% fee, of which X.XX% is added to the Liquidity Pool of the swap pair they traded on.

For example:

  • There are 10 LP tokens representing 10 RSOT and 10 BNB tokens.

  • 1 LP token = 1 RSOT + 1 BNB

  • Someone trades 10 RSOT for 10 BNB.

  • Someone else trades 10 BNB for 10 RSOT.

  • The RSOT/BNB liquidity pool now has 10.017 RSOT and 10.017 BNB.

  • Each LP token is now worth 1.00017 RSOT + 1.00017 BNB.

To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the RSOT Farms, while still earning your X.XX% trading fee reward.

Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss.

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