Platform is live, but a few updates are still in progress. If you spot an issue, reach out on Discord.
Published on Jun 21, 2022

Liquidity Provider Tokens (LP Tokens)

Author: Rubin
#Glossary
icon-alt

Liquidity provider tokens, also commonly known as LP tokens are exclusively issued to the liquidity providers issued on a DEX. Oftentimes, they run on an AMM (automated market maker) protocol.

In order to track down a participant’s contribution to the overall liquidity pool, PL tokens are often issued to the user. The value of a single LP token can be calculated by dividing the total value of the liquidity pool by the total number of LP tokens in circulation. Like every other ERC-20 standard token, LP tokens are also available to transfer, stoke or trade with other protocols.


Join the Communitynorth_east
pattern-left
pattern-right
ethglobal-one
ethglobal-two
ethglobal-three
ethglobal-four
ethglobal-five
ethglobal-six
ethglobal-seven

Subscribe to receive Alpha!

Join 4.3k subscribers from renowned companies worldwide and get a weekly update in your inbox. Stay updated on the latest and finest projects and product updates.