Liquidity providers on Loop DEX earn a share of swap fees.
To provide liquidity to the exchange, create Loop LP tokens by combining two tokens in equal amounts. LP tokens represent a liquidity provider's ownership of a liquidity pool and their share of the fees.
If you deposit LOOP and UST into a liquidity pool, you'll receive LOOP-UST LP tokens. The number of LP tokens you receive represents your share of the LOOP-UST liquidity pool.
Whenever a trader swaps LOOP for UST or UST for LOOP on Loop DEX, they pay a 0.3% fee. As a result, 0.225% is added to the liquidity pool of the swap pair they traded on. 0.075% is given to LOOP staking pools.
You, as the LP token holder, receive the portion of the trading fee that is representative of your share of the liquidity pool.
Pair, total locked value, 7 day trading fee, and APR are listed above the available pools.
- Ticker represents the asset pair contained in the liquidity pool
- Total Locked is the total value of assets locked in the liquidity pool (UST)
- 7 Day Volume is the total volume of swaps that have been conducted in 7 days (UST)
- 7 Day Trading Fees is the total trading fees, in UST, accumulated within the past 7 days
- APR is annual percentage rate
Providing liquidity is not a lossless investment. Before investing in liquidity pools, users are encouraged to conduct their own research.