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.
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.