LP token
A token representing a liquidity provider’s claim on a pool or liquidity position.
In more detail
An LP token acts like a receipt for the position, not a separate guarantee of its value. Its claim depends on the pool's rules and underlying assets. Some pools use interchangeable share tokens, while others represent individual positions differently, including NFTs. Transferring the receipt can transfer the corresponding claim too.
How you might use it
After depositing into a Uniswap v2 pool, your wallet receives LP tokens that represent your share of that pool.
- Written out
- Liquidity provider token
- Also called
- Liquidity token
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