Liquidity Provider Tokens (LP Tokens)
AMM / DEXLiquidity provider tokens, or LP tokens, are special tokens given to people who add funds to a liquidity pool on a decentralized exchange. These pools help facilitate trading by providing the necessary assets for transactions.
- Definition
- Liquidity provider tokens, or LP tokens, are special tokens given to people who add funds to a liquidity pool on a decentralized exchange. These pools help facilitate trading by providing the necessary assets for transactions.
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