Liquidity Pools and Adding Liquidity
MocktailSwap 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 DRINKS tokens (MocktailSwap’s version of liquidity provider tokens).
As an example, if you deposited $MOK and $BNB into a liquidity pool, you would receive MOK-BNB FLIP tokens.
The number of FLIP tokens you receive represents your portion of the MOK-BNB liquidity pool. You can also redeem your funds at any time by removing your liquidity.
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 MocktailSwap, the trader pays a 0.2% fee, of which 0.17% is added to the liquidity pool of the swap pair they traded on.
For example:
    There are 10 FLIP tokens representing 10 MOK and 10 BNB tokens.
    1 DRINK token = 1 MOK + 1 BNB
    Someone trades 10 MOK for 10 BNB.
    Someone else trades 10 BNB for 10 MOK.
    The MOK/BNB liquidity pool now has 10.017 MOK and 10.017 BNB.
    Each FLIP token is now worth 1.00017 MOK + 1.00017 BNB.
To make being a liquidity provider even more worth your while, you can also put your FLIP tokens to work whipping up some fresh yield on the MOK farms, while still earning your 0.17% trading fee reward.
Last modified 6mo ago
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