# LIQUIDITY POOLS ## 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://atlantisfi.gitbook.io/arbiswap/protcol/liquidity-pools.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.