Our platform allows users to inject liquidity. Discover the benefits of doing it by reading this article.
What's a Liquidity Pool?
PartySwap allows token holders to add liquidity to "pools" and get rewards for supporting our platform. When you add your tokens to a "Liquidity Pool" you receive "Liquidity Provider" tokens. In our case, PartySwap's LP tokens are known as xPARTYs.
The number of LP tokens (xPARTY ) you receive represents your portion in the Liquidity Pool. If you have more xPARTYs, you gain more reward tokens that you can exchange for other cryptocurrencies through our swap (or other Avalanche-based swaps too).
You can remove your investment from the Liquidity Pool and claim the rewards anytime you want. However, if you have questions, we recommend you read our tutorials section to learn how to proceed and start farming $PARTY tokens.
You will also earn trading fees!
By providing liquidity, you will also generate extra rewards through trading fees. Every time a user makes a swap, the operation fees will be distributed to our Liquidity Providers.
The trading fee on our swap is 0.30%, an amount destined to work as an incentive for our Liquidity Providers.