âLiquidity Providing FAQs
Questions about Liquidity & Pools
1. What are the benefits of providing liquidity on Kibble?
Liquidity providers earn transaction fees from swaps within the pool, and they receive Liquidity Provider (LP) tokens representing their proportional share of the pooled assets.
2. What are LP tokens?
LP tokens represent a proportional share of a liquidity pool and can be obtained by contributing liquidity to the pool.
3. Can I withdraw my liquidity at any time?
Yes, liquidity can be withdrawn at any time by redeeming liquidity tokens for a proportional share of the pool.
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