Liquidity Providers
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Liquidity providers earn a 0.17% fee on all trades proportional to their share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing your liquidity.
Yeti Exchange's liquidity provider pools allow anyone to provide liquidity via
When they do so they will receive LP tokens (Yeti Liquidity Provider tokens). A liquidity pool is a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending, and many more functions.
For example if a user deposited $YETI and $BNB into a pool they would receive YETI-ETH LP tokens. These tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point.
Every time a user trades between $YETI and $BNB a 0.2% fee is taken on the trade. 0.15% of that trade goes back to the LP pool. If previously there were 100 LP tokens representing 100 BNB and 100 YETI each token would be worth 1 BNB & 1 YETI .
If one user trades 10 BNB for 10 YETI, and another traded 10 YETI for 10 BNB, then there would now be 100.025 BNB and 100.025 YETI. This means each LP token would be worth 1.00025 BNB and 1.00025 XETI now when it is withdrawn.
You need to provide tokens in a 1:1 ratio to the liquidity pool. This means that if you are adding to a YETI-BNB pool, and wish to provide 2 BNB worth of liquidity, you would need to convert approximately 1 BNB to YETI tokens first via our Swap.
