Liquidity Provider Tokens (LP Tokens)

AMM / DEX

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.

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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