Liquidity Pools
Last updated
Last updated
Liquidity Pools are a place to pool tokens (otherwise known as liquidity) so that users can use them to make trades in a decentralized and permissionless way. These pools are created by users and decentralized apps (or Dapps, for short) who want to profit from their usage. To pool liquidity, the amounts a user supplies must be equally divided between two coins: the primary token (sometimes called the quote token) and the base token (usually $BNB or a stable coin).
CUBISwap's liquidity pools allow anyone to provide liquidity to them; when they do so, they will receive LP tokens (CUBISwap Liquidity Provider tokens). If a user deposited $CUBI and $BNB into a pool, they would receive $CUBI - $BNB LP token. These tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point.
