May 24, 2024

How to buy/get LP tokens

How to buy/get LP tokens : How to buy LP tokens to start farming on DEFI yield farming platforms such as pancakeswap, bakeryswap, sakeswap and similar projects ? Here is a simple guide about what LP tokens are and how to convert tokens into LP tokens :

What are LP Tokens ?

LP Tokens are representative tokens which carry the value of two liquidity assets provided to a liquidity pool.

How to get LP tokens ?

In order to get LP tokens, providers have to add both tokens of the pool pair. For example, if you want to get Cake-Usdt LP token, you will need to add equivalent amounts of Cake and usdt to the pool (for example 100 usd worth of cake plus 100 usd worth of usdt). The conversion rate for both tokens is provided to let you calculate the amount of tokens you need to add to the pool. You must have both tokens stored in your wallet before getting LP tokens. If you do not have both tokens, you can either use the exchange function or transfer both tokens from your current exchange.

How to Split LP Tokens to Get Your Tokens Back ?

In order to split LP tokens to get provided tokens back, follow these steps :

  • Unstake LP tokens
  • Go to “Liquidity ” section
  • See “Your liquidity” balance . If you dont unstake them, LP tokens dont show up.
  • Follow the instructions the system requires.

Note : You need BNB (Bep20) balance in your wallet to pay transaction fees.

You can ask your questions about LP tokens.

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