Liquidity Pools
When you add your token to a Liquidity Pool you will receive Gol Liquidity Provider (GLP) tokens and a share in the fees distribution.

GLP Tokens

As an example, if you deposited GOL and BNB into a Liquidity Pool, you'd receive GOL-BNB GLP tokens.
The number of LP tokens you receive represents your portion of the GOL-BNB Liquidity Pool.
You can also redeem your funds at any time by removing your liquidity.

Liquidity Providers earn trading fees

Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool.
Whenever someone trades on GolSwap, the trader pays a 0.25% fee, of which 0.17% is added to the Liquidity Pool of the swap pair they traded on.
For example:
  • There are 10 LP tokens representing 10 GOL and 10 BNB tokens.
  • 1 GLP token = 1 GOL + 1 BNB
  • Someone trades 10 GOL for 10 BNB
  • Someone else trades 10 BNB for 10 GOL.
  • The GOL/BNB liquidity pool now has 10.02 GOL and 10.02 BNB.
  • Each LP token is now worth 1.0002 GOL + 1.0002 BNB.
To make being a liquidity provider even more worth your while, you can also put your GLP tokens to work whipping up some fresh yield on the GolFarm, while still earning your 0.17% trading fee reward.

Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss.