# 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

{% hint style="info" %}
Providing liquidity gives you a reward in the form of Cronopoly Finance, the trader pays a 0.20% fee, **of which 0.10%** is added to the Liquidity Pool of the swap pair they traded on. But what is happening with the rest? Most of it is going to be infused into liquidity by our algorithm CRP-S on demand to make sure you have a high APR. 
{% endhint %}

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

{% hint style="danger" %}
Providing liquidity is not without risk. Impermanent loss exposure is possible.
{% endhint %}


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