💧Liquidity Pools
Getting rewards by providing Liquidity
Last updated
Getting rewards by providing Liquidity
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. To pool liquidity, the supplied amount must be equally divided between two coins: the primary token and the base token.
Zyberswap's liquidity pools allow users to provide liquidity. When they do so, they will receive ZLP tokens (Zyberswap Liquidity Provider tokens) as proof of providing liquidity. If a user deposited $ZYB and $ETH into a pool, they would receive ZYBER-ETH LP tokens. These tokens represent a proportional share of the pooled assets, allowing users to reclaim their funds at any point.
Every time the pool is used to trade between $ZYB and $ETH, a 0.25% fee is taken on the trade. 0.15% of that trade goes back to the LP pool. We aim to have the lowest fees that still allow lucrative rewards for those who are providing the liquidity. Which is crucial to maintaining a sustainable and healthy Decentralized Exchange.
You can supply liquidity and start earning fees here.
Your liquidity can earn even more rewards in the form of Zyberswap's native token ($ZYB) if they're staked at Yield Farms!
For the Zyberswap V3 protocol fees are significantly lower than in V2.