> For the complete documentation index, see [llms.txt](https://atlantisfi.gitbook.io/arbiswap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://atlantisfi.gitbook.io/arbiswap/protcol/liquidity-pools.md).

# LIQUIDITY POOLS

Getting rewards by providing Liquidity

## What Are Liquidity Pools?

Liquidity Pools are a place to pool tokens (otherwise known as liquidity) so that users can use them to make trades in a decentralized and permissionless way. To pool liquidity, the supplied amount must be equally divided between two coins: the primary token and the base token.

When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and reward in $ARBI.

## LP Tokens

As an example, if you deposited **ARBI** and USDC into a Liquidity Pool, you'd receive ARBI**-USDC LP** tokens.

The number of LP tokens you receive represents your portion of the ARBI-USDC Liquidity Pool. 

You can also redeem your funds at any time by removing your liquidity.

## Liquidity Providers earn ARBI

Providing liquidity gives you a reward in the form of ARBI. 

ARBI reward is given to incentivize liquidity on ArbiSwap. 

## Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss.