🌊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.