Liquidity Pools and Adding Liquidity

WAP$WAP liquidity pools allow you to provide liquidity by adding your tokens to liquidity pools or “LPs”.

When you add your token to a liquidity pool (LP), you will receive LP tokens (WAP$WAP’s version of liquidity provider tokens).

As an example, if you deposited $WAP and $BNB into a liquidity pool, you would receive WAP-BNB LP tokens.

The number of LP tokens you receive represents your portion of the WAP-BNB liquidity pool. You can also redeem your funds at any time by removing your liquidity.

Providing liquidity is not without risk, as you may be exposed to impermanent loss.

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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 WAP, the trader pays a 0.25% fee, of which 0.18% is added to the liquidity pool of the swap pair they traded on.

For example:

• There are 10 WAP LP tokens representing 10 WAP and 10 BNB tokens.

• 1 WAP LP token = $1 WAP + $1 BNB

• Someone trades 10 WAP for 10 BNB.

To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the WAP$WAP farms, while still earning your 0.18% trading fee reward.