Liquidity Tokens
When users provide liquidity, they receive liquidity provider (LP) tokens representing their share of the pool.
At Ax11, liquidity is divided into two sides: users receive LPX tokens for their token X contribution and LPY tokens for their token Y contribution. Both tokens are fungible and adhere to the ERC-20 standard, ensuring seamless integrations and future developments.
By utilizing LPM features on the Ax11 protocol, LP tokens can be further diversified into:
LPX-long (Liquidity X long token)
LPX-short (Liquidity X short token)
LPY-long (Liquidity Y long token)
LPY-short (Liquidity Y short token)
LPM is an optional feature, extending beyond standard liquidity provision. It is designed for users who seek additional earning opportunities while participating in the Ax11 ecosystem.
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