LP tokens

When you add liquidity to a pool, the pool mints LP tokens to your wallet. They are a receipt: they let you claim your original deposit back, plus the trading fees that have accrued to your share since.

What they represent

Your LP token balance reflects your proportional stake in one specific pool's reserves. As the pool earns fees, the reserves grow, so the same LP tokens redeem for more of the underlying pair over time.

Key properties

• ERC-20: LP tokens are ordinary tokens: transferable, and stakeable on other contracts.
• Non-custodial: you hold them and control withdrawal timing. TRANT never takes them.
• Pool-specific: each pool has its own LP token; they are not interchangeable.
• Redeemable any time: burn them to take back your share of the two underlying tokens.

Uses

Beyond redeeming, LP tokens can be staked in the pool's staking contract to earn $TRANT through liquidity mining. Because they are ERC-20, other protocols may accept them as collateral or in yield strategies, but transferring custody of an LP token hands over control of that liquidity, so treat them like any other asset.