Liquidity Pools

When you add your token to a Liquidity Pool you will receive Liquidity Provider (NTF-LP) tokens and share in the fees (≈12% - 30% more than the competitors).

NTF-LP Tokens

As an example, if you deposited NTF and BNB into a Liquidity Pool, you'd receive NTF-BNB LP tokens.

The number of LP tokens you receive represents your portion of the NTF-BNB Liquidity Pool.

You can also redeem your funds at any time by removing your liquidity.

Liquidity Providers earn trading fees

Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool.

Whenever someone trades on NativeSwap, the trader pays a 0.25% fee, of which 0.19% is added to the Liquidity Pool of the swap pair they traded on.

For example:

  • There are 10 NTF-LP tokens representing 10 NTF and 10 BNB tokens.

  • 1 LP token = 1 NTF + 1 BNB.

  • Someone trades 10 NTF for 10 BNB.

  • Someone else trades 10 BNB for 10 NTF.

  • The NTF/BNB liquidity pool now has 10.020 NTF and 10.020 BNB.

  • Each LP token is now worth 1.00020 NTF + 1.00020 BNB.

To make being a liquidity provider even more worth your while, you can also put your NTF-LP tokens to work whipping up some fresh yield on the NTF Farms, while still earning your 0.19% trading fee reward.

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Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss.

“Simply put, impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.” - Nate Hindman

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