LP Tokens

List of top LP Tokens coins by market cap. The current LP Tokens coin market cap is $0.00 , which has changed by +0.65% in the past 24 hours; the LP Tokens coin trading volume is $968.56K, which has changed by +1.44% in the past 24 hours. There are 4 cryptocurrencies in the LP Tokens coin list today.
LP tokens, short for Liquidity Provider tokens, are digital assets issued to users who contribute liquidity to decentralized exchanges (DEXs) and automated market makers (AMMs). When users deposit equal values of two cryptocurrencies into a liquidity pool, they receive LP tokens representing their proportional ownership stake in that pool. These tokens serve as proof of contribution and allow providers to track their share of trading fees generated by the pool. LP tokens are typically tradeable and can be transferred, sold, or used as collateral in other DeFi protocols. The value of LP tokens fluctuates based on the underlying asset prices and the total liquidity in the pool. Holders earn passive income through transaction fees charged on trades executed within the pool, though they face impermanent loss risk when token prices diverge significantly. LP tokens are fundamental to the DeFi ecosystem, enabling decentralized trading and providing essential liquidity infrastructure for platforms like Uniswap, SushiSwap, and Curve Finance.