> For the complete documentation index, see [llms.txt](https://genesys-blockchain.gitbook.io/genesys-blockchain/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://genesys-blockchain.gitbook.io/genesys-blockchain/blue-lotus-dao/blue-lotus-dao-products/exchange/lps-liquidity-pools.md).

# LPs (Liquidity Pools)

When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.

## LP Tokens

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

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

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

![](https://1571416500-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fj9TewAx2uVX92ewVYaLW%2Fuploads%2FbbhMcP90sitRUPleWiH1%2F7.png?alt=media\&token=92e713f7-941c-4779-8083-12ac204c09ae)

## 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 Blue Lotus DAO, the trader pays a 0.25% fee, **of which 0.17%** is added to the Liquidity Pool of the swap pair they traded on.

For example:

* There are 10 LP tokens representing 10 GSYS and 10 BNB tokens.
* 1 LP token = 1 GSYS + 1 BNB
* Someone trades 10 GSYS for 10 BNB.
* Someone else trades 10 BNB for 10 GSYS.
* The GSYS/BNB liquidity pool now has 10.017 GSYS and 10.017 BNB.
* Each LP token is now worth 1.00017 GSYS + 1.00017 BNB.

To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the GSYS Farms, while still earning your 0.17% trading fee reward.

## Impermanent Loss

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