> For the complete documentation index, see [llms.txt](https://docs.blacksail.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.blacksail.finance/faq/what-are-lp-tokens.md).

# What are LP Tokens?

Liquidity pool **(LP) tokens** are given to liquidity providers as a reward for locking their assets in a pool on decentralized exchanges (DEXs) like Uniswap and Curve. Each LP token represents a share of the liquidity deposited in the pool and is used to withdraw those assets when needed. Some platforms allow liquidity providers to stake their LP tokens, offering additional crypto rewards to encourage them to keep their funds locked in the pool for longer periods.<br>