When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.
As an example, if you deposited BRIS and BNB into a Liquidity Pool, you'd receive BRIS-BNB LP tokens.
The number of LP tokens you receive represents your portion of the BRIS-BNB Liquidity Pool.
You can also redeem your funds at any time by removing your liquidity.
Providing Liquidity gives you a reward in the form of trading fees when people use your liquidity pool.
Whenever someone trades on BridgeSwap, the trader pays a 0.3% fee, of which 0.2% is added to the Liquidity Pool of the swap pair they traded on.
- There are 10 LP tokens representing 10 BRIS and 10 BNB tokens.
- 1 LP token = 1 BRIS + 1 BNB
- Someone trades 10 BRIS for 10 BNB.
- Someone else trades 10 BNB for 10 BRIS.
- The BRIS/BNB liquidity pool now has 10.02 BRIS and 10.02 BNB.
- Each LP token is now worth 1.0002 BRIS + 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 BRIS Farms, while still earning your 0.2% trading fee reward.