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.