💧 Liquidity Providers: Earn on Every Trade

When you add your token to a Liquidity Pool, you will receive LP tokens that entitle you to a portion of the fees generated.

LP Tokens: As an example, if you deposit Falco-X and CORE into a Liquidity Pool, you will receive Falco-X-CORE LP tokens.

The amount of LP tokens you receive represents your share of the Falco-X/CORE Liquidity Pool.

You can redeem your funds at any time by withdrawing your liquidity.

Liquidity Providers earn transaction fees: Providing liquidity rewards you with transaction fees every time someone uses your Liquidity Pool.

Every time someone makes a swap in the Falco-X Swap, they pay a 0.30% fee, of which 0.15% is added to the Liquidity Pool of the swap pair used.

Example of how it works:

You have 10 LP tokens that represent 10 Falco-X and 10 CORE.

1 LP token = 1 Falco-X + 1 CORE.

A user exchanges 10 Falco-X for 10 CORE.

Another user exchanges 10 CORE for 10 Falco-X.

The Falco-X/CORE Liquidity Pool now contains 10,017 Falco-X and 10,017 CORE.

Each LP token is now worth 1.00017 Falco-X + 1.00017 CORE.

To make being a liquidity provider even more beneficial, you can also put your LP tokens to work generating additional yield on Falco-X farms, while still earning your 0.15% reward from transaction fees.

Impermanent Loss It's important to note that when you provide liquidity to a pool, you may experience Impermanent Loss. This happens if the relative value of the tokens in the pool changes significantly while your liquidity is compromised. Despite this, transaction fee rewards can partially offset this loss.