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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