Liquidity Pools
What are LP pools
When you add your token to a Liquidity Pool, you will receive Liquidity Provider (LP) tokens and share in the fees.
LP Tokens
For example, if you deposited Swych and BNB into a Liquidity Pool, you'd receive Swych-BNB LP tokens.
The number of LP tokens you receive represents your portion of the Swych-BNB Liquidity Pool.
You can also redeem your funds at any time by removing your liquidity.
On Swych pairs, when liquidity is added/withdrawn, 18% of the amount of $SWYCH deposited or withdrawn is deducted.
Liquidity Providers earn trading fees
Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool.
Whenever someone trades on Swych, the trader pays a 0.25% fee, of which 0.17% is added to the Liquidity Pool of the swap pair they traded on. When you add or remove liquidity on Titano, you will receive less than on other normal currencies because you have to pay the taxes that Titano has.
Impermanent Loss
Providing liquidity can be risky, as you may be exposed to impermanent loss.
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