> For the complete documentation index, see [llms.txt](https://doge-gold-floki-finance.gitbook.io/dgf/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doge-gold-floki-finance.gitbook.io/dgf/features/exchange/token-trade/liquidity-pools.md).

# Liquidity Pools

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 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. 

* <mark style="color:yellow;">**You can also redeem your funds at any time by removing your liquidity.**</mark>

<figure><img src="https://3250151964-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FGv18fpvdxXoxu1yVFXU0%2Fuploads%2FYqRSHFLtaKy5ih1kbddM%2Fli.PNG?alt=media&amp;token=c737cb2c-24b3-4419-a0de-e01dfe83fea1" alt=""><figcaption></figcaption></figure>

**Liquidity Providers earn trading fees**

[<mark style="color:yellow;">**Providing Liquidity gives you a reward in the form of trading fees when people use your liquidity pool.**</mark> ](https://dex.doge-gold-floki.finance/#/pool)

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.**

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