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)

Swap cannot be used to switch between different token positions. For example, an X long position cannot be swapped into a Y long or Y short position. Swaps are only allowed within the same token position.

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.