🧫Liquidity Pools

Exchange

LP Tokens

As an example, if you deposited FLASK and BNB into a Liquidity Pool, you'd receive FLASK-BNB LP tokens.

The number of LP tokens you receive represents your portion of the FLASK-BNB Liquidity Pool.

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

Earning trading fees

Whenever someone trades on Labswap, for each hop (swap) in each Exchange liquidity pool, the trader pays a fixed 0.25% fee, of which 0.17% is added back to the Liquidity Pool in a form of trading fees.

Earning FLASK

Impermanent Loss

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

“Simply put, impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.” - Nate Hindman