LP Tokens and Rewards

Liquidity pool tokens (LP tokens) are given to users who provide liquidity in liquidity pools. LP tokens are created to serve the liquidity providing individual as receipt, which allow them to claim their original stake and also earned interest. Many platforms (including HeliSwap) also allow for users to make use of their LP tokens to earn extra interest by providing these LP tokens towards a yield farm.

LP rewards on HeliSwap are accumulated through the same mechanism as Uniswap V2 - there is a 0.3% transaction fee on every swap. These fees are put into HeliSwap’s liquidity reserves, thereby increasing the value of LP tokens and rewarding their owners.

💡 LP tokens on HeliSwap adhere to the ERC-20 token standard.