Liquidity Pools

LP Tokens

When you add tokens to the liquidity pool, you will receive Liquidity Provider (LP) tokens, and you are called Liquidity Providers.

Liquidity Providers will share together 5/6 of the trading commission that occurred in the liquidity pool where the liquidity is added. Additionally, LP tokens can be deposited in farms to harvest VAN rewards, which is called farming.

How to Add/Remove Liquidity

For a detailed guide on how to add/remove, please check the following page.

pageHow to Add/Remove Liquidity

Impermanent Loss

One risk that all the Liquidity Providers should be aware of is the Impermanent Loss. To have a better understanding of what Impermanent Loss is and how to avoid that, please read the article provided by Binance Academy.