Pools
Last updated
Last updated
Pools GlobalSwap allows you to provide liquidity by adding your tokens to Liquidity Pools.When you add your token to a Liquidity Pool you will receive Liquidity Pool (LP) tokens and share in the fees.
As an example, if you deposited GB and BUSD into a Liquidity Pool, you would receive GB-BUSD LP tokens.The number of LP tokens you receive represents your portion of the GB-BUSD Liquidity Pool.You can also redeem your funds at any time by removing your liquidity.Providing liquidity is not without risk, as you may be exposed to impermanent loss.
It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees. Whenever someone trades GlobalSwap, the trader pays a 0.2% fee, of which 0.17% is added to the Liquidity Pool of the swap pair they traded on.For example:
There are 10 LP tokens representing 10 GB and 10 BUSD tokens.
1 LP token = 1 GB + 1 BUSD
Someone trades 10 GB for 10 BUSD.
Someone else trades 10 BUSD for 10 GB.
The GB/BUSD liquidity pool now has 10.017 KRD and 10.017 BUSD.
Each LP token is now worth 1.00017 GB + 1.00017 BUSD.
To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the Farms, while still earning your 0.17% trading fee reward.allow you to provide liquidity by adding your tokens to Liquidity Pools.
