Search…
⌃K

Liquidity Tokens

Soku Swap liquidity tokens(SOKU LP) represent the provider's contribution to the liquidity pool. They are ERC20 coins or BEP20 tokens, depending on which chain they provided liquidity on. These tokens allow liquidity providers to sell their liquidity or transfer them between accounts without impacting liquidity in pools.
Liquidity tokens are minted and sent to the addresses of liquidity providers. They represent the providers' contribution to a pool. These tokens are highly divisible and can be burned at any time to return a proportional share of the market to the providers. Providers deposit into reserves and mint new liquidity tokens.
The BNB sent to the function determines the number of liquidity tokens minted. The formula below calculates minted tokens
amountMinted=totalAmount(bnbDeposited / bnbPool)
Depositing BNB into reserves calls for depositing an equivalent value of BEP20 tokens as well. Tokens deposited is calculated by the formula
tokensDeposited=tokenPool(bnbDeposited / bnbPool)