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Liquidity Pool
When you add tokens to the liquidity pool, you will earn liquidity pool (LP) tokens and share fee revenue.

LP Token

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For example, if you deposit EVMOS and USDC into the liquidity pool, you will receive EVMOS-USDC LP tokens.
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The number of LP tokens you receive represents your share of the EVMOS-USDC liquidity pool. You can also redeem funds at any time by removing liquidity funds.
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Liquidity providers earn transaction fees
When someone trades with your liquidity pool, you will earn a corresponding fee as a reward. The trader will pay a fee of 0.3%, of which 0.15% will be added to the liquidity pool of the pair they are trading.
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For instance:
● 10 LP tokens represent 10 STAR and 10 USDT tokens
● 1 LP token = 1 STAR + 1 USDT
● Someone trades 10 STAR for 10 USDT
● Other people trade 10 STAR for 10 USDT
● STAR/USDT liquidity pool now has 10.015 STAR and 10.015 USDT
● Each LP token is now worth 1.00015 STAR + 1.00015 USDT
To get even more value out of being a liquidity provider, you can also put LP tokens into the Farm to earn more revenue while still receiving the 0.15% transaction fee bonus.

Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent losses.
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LP Token
Impermanent Loss