Liquidity Pools
When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.
Last updated
When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.
Last updated
LP Tokens
As an example, if you deposited DGF and BNB into a Liquidity Pool, you'd receive DGF-BNB LP tokens.
The number of LP tokens you receive represents your portion of the DGF-BNB Liquidity Pool.
You can also redeem your funds at any time by removing your liquidity.
Liquidity Providers earn trading fees
Whenever someone trades on Doge Gold Floki, the trader pays a 0.3% fee, of which 0.2% is added to the Liquidity Pool of the swap pair they traded on.
For example:
There are 10 LP tokens representing 10 DGF and 10 BNB tokens.
1 LP token = 1 DGF + 1 BNB
Someone trades 10 DGF for 10 BNB.
Someone else trades 10 BNB for 10 DGF.
The DGF/BNB liquidity pool now has 10.02 DGF and 10.02 BNB.
Each LP token is now worth 1.0002 DGF + 1.0002 BNB.
To make being a liquidity provider even more worth, you can also put your LP tokens to work whipping up some fresh yield on the DGF Farms, while still earning your 0.2% trading fee reward.
