LP
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What is a liquidity pool? How does it work?
Friend who’s just stepped into the world of DeFi! Have you often swapped tokens on Decentralized Exchanges (DEXs) like Uniswap or PancakeSwap, but always had a nagging question: “Weird, I just click a button and the trade goes through instan…
PandaTool Demystifying Liquidity Pools: A Beginner’s Guide
For newcomers to crypto, the concept of a “liquidity pool” (often called a “pool”) can be confusing yet indispensable. Liquidity pools underpin token pricing, trading, and capital flows. Without understanding them, you can neither effectivel…
Must-Read for Liquidity Providers: How Are LP Tokens Calculated?
The calculation of the number of LP tokens a user receives after adding liquidity is not singular; it depends on the specific protocol and the condition of the pool at the time of deposit.
Below, I will explain the logic behind the LP…