Blacksail Finance
  • About Blacksail Finance
    • What is Blacksail Finance?
    • Compounding Rewards
    • Harvester/Compound Events
    • Blacksail Vaults
    • SAIL Token
    • SAIL Bonding Curve
    • SAIL Curve Leveraging
    • SAIL Whitelist
    • Blacksail Parlays
    • Anti-Whaling Policies
    • Protocol Revenue
    • Audits
      • SolidProof.io
      • In-House Audit
    • Blacksail Contracts
    • Risks
    • Mission Statement
    • Letter to the Community
  • FAQ
    • Partnership Inquiries
    • Where Do Rewards Come From?
    • What is a Bonding Curve?
    • What is Liquidity Staking?
    • What are LP Tokens?
    • What is a Yield Aggregator?
    • What is Yield Farming?
  • Tutorials
    • Bridging from Fantom to Sonic
    • Connecting to Sonic on Metamask
  • Resources
    • Media Pack
  • Links
    • Website
    • Twitter
    • Discord
    • Telegram
    • Merch Store
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  1. FAQ

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.

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Last updated 5 months ago