Advantage of adding Liquidity
Last updated
Was this helpful?
Last updated
Was this helpful?
By adding liquidity you all earn 0.2% of all trades on this pair proportional to your share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing your liquidity. 0.20% - Returned to Liquidity Pools in the form of a fee reward for liquidity providers.
0.075% - Sent to the Iswap Treasury.
0.025% - Sent towards ICR buyback and burn.
When you add your token to a Liquidity Pool you will receive Liquidity Pool (LP) tokens.
As an example, if you deposited TRX and ICR into a Liquidity Pool, you would receive ICR-TRX LP tokens.
The number of LP tokens you receive represents your portion of the TRX-ICR Liquidity Pool.
You can also redeem your funds at any time by removing your liquidity.
BUT! Providing liquidity is not without risk, as you may be exposed to impermanent loss.It’s not as scary as it sounds, but it is worth learning about the concept before you get started.
Check out this great article about Impermanent Loss from Binance Academy to learn more