> For the complete documentation index, see [llms.txt](https://cubi-swap.gitbook.io/cubiswap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cubi-swap.gitbook.io/cubiswap/products/amm/liquidity-pools.md).

# Liquidity Pools

<figure><img src="/files/jiQy9DDkVxarQLoXViSj" alt=""><figcaption></figcaption></figure>

### What Are Liquidity Pools?[​](https://dev.sushi.com/docs/Products/Sushiswap/Liquidity%20Pools#what-are-liquidity-pools) <a href="#what-are-liquidity-pools" id="what-are-liquidity-pools"></a>

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.&#x20;