Liquidity Pools

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

LP Tokens

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

The number of LP tokens you receive represents your portion of the BLFI-BUSD Liquidity Pool.

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

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