Providing Liquidity

When you add your token to a liquidity pool, you will receive Liquidity Pool (LP) tokens.

As an example, if you deposit CANDY and CRO into a liquidity pool, you would receive CANDY-CRO LP tokens.

The number of LP tokens you receive represents your portion of the CANDY-CRO liquidity pool.

You can remove your liquidity anytime. Be ware of impermanent loss.

Liquidity providers earn trading fees. For example, whenever someone trades any token, he pays a 0.15% fee, of which 0.10% is added to the liquidity pool of the swap pair they traded on.

For example:

• 10 LP tokens are representing 10 CANDY and 10 CRO tokens.

• 1 LP token = 1 CANDY + 1 CRO

• Someone trades 10 CANDY for 10 CRO

• Someone else trades 10 CRO for 10 CANDY .

• The CANDY/CRO liquidity pool now has 10.015 CANDY and 10.015 CRO.

• Each LP token is now worth 1.00015 CANDY + 1.00015 CRO.