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Liquidity Pools

When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.

LP Tokens

As an example, if you deposited Besc and USDT into a Liquidity Pool, you'd receive BESC**-USDT LP** tokens.

The number of LP tokens you receive represents your portion of the BESC-USDT Liquidity Pool.

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

Liquidity Providers earn trading fees

Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool.

Whenever someone trades on BeanSwap, the trader pays a 3% fee, of which 1% is added to the Liquidity Pool of the swap pair they traded on.

Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss.