🚰Liquidity Pools
What Are Liquidity Pools?
Liquidity pools play a critical role in enabling users to make trades in a decentralized and permissionless manner. These pools allow users to pool their tokens, or provide liquidity, so that others can utilize them for trading. To create a liquidity pool, users must equally divide the supplied amount between two tokens.
MobyDEX offers users the ability to provide liquidity to these pools and earn MLP tokens (MobyDEX Liquidity Provider tokens) as proof of providing liquidity. For example, if a user deposits MOBY and BNB into a pool, they would receive MOBY-BNB LP tokens, which represent a proportional share of the pooled assets. These tokens allow users to withdraw their funds at any time.
What are the Fees?
Whenever a pool is used for trading between MOBY and BNB, a 0.3% fee is taken on the trade. Of that fee, 0.1% is returned to the LP pool. Our goal is to maintain the lowest possible fees while still providing lucrative rewards for liquidity providers. This approach is essential to ensure the sustainability and health of MobyDEX.
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