Liquidity Pools & Adding Liquidity
Let's go hit the pools! 🏊
About ApeSwap's Liquidity Pools
ApeSwap liquidity pools allow you to provide liquidity by adding your tokens to liquidity pools or “LPs”.
When you add your token to a liquidity pool (LP), you will receive APE-LP tokens (ApeSwap’s version of liquidity provider tokens).
As an example, if you deposited $BANANA and $BNB into a liquidity pool, you would receive BANANA-BNB APE-LP tokens.
The number of APE-LP tokens you receive represents your portion of the BANANA-BNB liquidity pool. You can also redeem your funds at any time by removing your liquidity.
The Benefits of Providing Liquidity
It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees. Whenever someone trades on ApeSwap, they pay a 0.2% fee, of which 0.15% is added back to the liquidity pool of the swap pair they traded on. Additionally, you can earn juicy APRs from taking your LP tokens and using them to earn BANANA in our farms.
For example:
    There are 10 APE-LP tokens representing 10 BANANA and 10 BNB tokens.
    1 APE-LP token = 1 BANANA + 1 BNB
    Someone trades 10 BANANA for 10 BNB.
    Someone else trades 10 BNB for 10 BANANA.
    The BANANA/BNB liquidity pool now has 10.017 BANANA and 10.017 BNB.
    Each APE-LP token is now worth 1.00017 BANANA + 1.00017 BNB.
To make being a liquidity provider even more worthwhile, you can also put your APE-LP tokens to work in our BANANA farms (here), while still earning your 0.15% trading fee reward.
Last modified 3d ago
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