Liquidity Pools and Adding Liquidity
GanjaSwap Pools allow you to provide liquidity by adding your tokens to liquidity pools or “LP”s.
When you add your token to a liquidity pool (LP), you will receive Seed-LP tokens (GanjaSwap's version of liquidity provider tokens).
As an example, if you deposited $SEED and $BNB into a liquidity pool, you would receive SEED-BNB Seed-LP tokens.
The number of Seed-LP tokens you receive represents your portion of the SEED-BNB liquidity pool. You can also redeem your funds at any time by removing your liquidity.
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 GanjaSwap, 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 DAB tokens representing 10 SEED and 10 BNB tokens.
    1 DAB = 1 SEED + 1 BNB
    Someone trades 10 SEED for 10 BNB.
    Someone else trades 10 BNB for 10 SEED.
    The SEED/BNB liquidity pool now has 10.017 SEED and 10.017 BNB.
    Each DAB is now worth 1.00017 SEED+ 1.00017 BNB.
Last modified 6mo ago
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