Liquidity Pools pools allow you to provide liquidity by adding your tokens to liquidity pools.
When you add your token to a liquidity pool you will receive Liquidity Pool (LP) tokens.
As an example, if you deposited ONI and BNB into a liquidity pool, you would receive ONI-BNB LP tokens.
The number of LP tokens you receive represents your portion of the ONI-BNB liquidity pool.
You can also redeem your funds at any time by removing your liquidity.
It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees. Whenever someone trades on, the trader pays a 0.2% fee, of which 0.17% is added to the liquidity pool of the swap pair they traded on.
For example:
  • There are 10 LP tokens representing 10 ONI and 10 BNB tokens.
  • 1 LP token = 1 ONI + 1 BNB
  • Someone trades 10 ONI for 10 BNB.
  • Someone else trades 10 BNB for 10 ONI.
  • The ONI/BNB liquidity pool now has 10.017 ONI and 10.017 BNB.
  • Each LP token is now worth 1.00017 ONI + 1.00017 BNB.
To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the ONI farms, while still earning your 0.17% trading fee reward.
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