Liquidity

LP Farms offer users the chance to earn rewards by providing LP Tokens to Farms. The rewards you earn depend on the APR rate of the specific farm you're staking in. You can start earning by depositing tokens on CORESwap and becoming an LP Provider. Each farm has its own APR, determined by the available liquidity.

When you provide liquidity, you'll receive LP tokens. These tokens act as a record of your contribution to the pool and allow you to redeem your assets in exchange for the LP Tokens.

To ensure smooth liquidity on CORESwap for seamless swaps, we incentivize Liquidity Providers by sharing 60% of the 0.25% trading fee charged on each swap. This is distributed as a reward to LP providers.

However, while you earn trading fees, there is a risk of Impermanent Loss. This occurs when the value of the assets you've provided as liquidity changes in comparison to their value when you initially deposited them. The greater the price change, the larger the potential loss. In simpler terms, you could end up with less value than what you initially provided. Be mindful of this risk before becoming a Liquidity Provider.