🌊Liquidity (Group LP)

When you add tokens to a liquidity pool, you will receive Liquidity Provider Proof (LP) tokens and can share in the pool’s transaction fee rewards.

LP tokens

As an example, if you deposit Flame and SUI into a liquidity pool, you will receive Flame-SUI LP tokens.

The amount of LP tokens you receive represents your share in the Flame-SUI liquidity pool.

You can redeem your funds at any time by withdrawing liquidity.

Liquidity providers earn transaction fees

When people use your liquidity pool, they will provide income for the liquidity you add in the form of transaction fees.

Whenever someone trades on Flame Swap, the trader needs to pay a fee of 0.25%, of which 0.17% will be added to the liquidity pool of the corresponding trading currency pair.

You can also stake your LP tokens on Volcano Farm, and get additional FPT rewards while maintaining a 0.17% transaction fee income.

Gratuitous loss

Providing liquidity is not without risk and you may face losses without compensation.