EggSwap Pools
These tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point.
Last updated
These tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point.
Last updated
EggSwap pools (https://www.eggs.cool/staking)allow liquidity providers to add their tokens to liquidity pools. When they do so they will receive ELP tokens (Eggswap Liquidity Provider tokens) for example if a user deposited $EGG and $EXP into a pool they would receive EGG-EXP ELP tokens. These tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point.
As an LP its important to understand that you may be exposed to "Impermanent Loss" when providing liquidity.
However, as a liquidity provider you will also receive trade fee reward. Every time a user trades between $EGG and $EXP a 0.3% fee is taken on the trade. 0.25% of that trade goes back to the the LP pool. If previously there were 100 ELP tokens representing 100 EXP and 100 EGG each token would be worth 1 EXP & 1 LAB. If one user trade 10 EXP for 10 EGG, and another traded 10 EGG for 10 EXP, then there would now be 100.025 EXP and 100.025 EGG. This means each LP token would be worth 1.00025 EXP and 1.00025 EGG now when it is withdrawn.
When you have your LP tokens you can also put them into yield farming on:
If you are farming on the farms, you will still get the 0.25% reward fee for being an LP when you next remove your liquidity. However, because the /farms and https://www.eggs.cool/ex/#/pool are different smart contracts its important to know that the pool page cannot see the tokens you have in farms. When you are on the pool page it only scans your wallet for ELP tokens to tell you if you are providing liquidity. Therefore it may say "No Liquidity" even though you ARE providing liquidity. It's just that it cannot see which tokens you've deposited into the farms.
