Liquidity Pools
Add your token to a Liquidity Pool and you will receive Liquidity Provider (LP) tokens and big share in the trading fees.
For example, if you deposited CRP and BNB into a Liquidity Pool, you'd receive CRP-BNB LP tokens.
The actual number of LP tokens you receive IS your portion of the CRP-BNB Liquidity Pool.
And to make it interesting: redeem your funds at any time by removing your liquidity.
Earn Trading Fees as a Liquidity Provider
A real world example:
Assumption: CRO & BNB are the same price
The are 10 LP tokens representing 10 CRP and 10 BNB tokens.
1 LP token = 1 CRP + 1 BNB
Someone trades 10 CRP for 10 BNB.
Someone else trades 10 BNB for 10 CRP.
The CRP/CRO liquidity pool now has 10.017 CRP and 10.017BNB.
Each LP token is now worth 1.00017 CRP + 1.00017 BNB.
But that isn't all. Thought about some staking?
Impermanent Loss
Providing liquidity is not without risk. Impermanent loss exposure is possible.
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