Bored Candy City
  • Introduction to Bored Candy City
  • DEX & AMM
    • Let's get you started
      • Create a wallet
      • Connect your wallet
      • Get CRO tokens
    • Trading
    • Providing Liquidity
    • Protocol Owned Liquidity
    • Yield Farming
    • Staking Pools
    • Launchpads
    • Roadmap
  • Play to Earn Games
  • Candynomics
  • Official Links
  • Contracts
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  1. DEX & AMM

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.

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Last updated 2 years ago