💎 When you add Liquidity to the Liquidity Pool, you will get LP tokens. The Liquidity Pool will also allow you to stake your LP tokens to earn BSW tokens on Biswap Farms.
💎 When someone makes a token swap, a transaction fee of 0.2% will be charged, and 75% will be returned to liquidity providers in the form of a fee reward.
Hence, apart from earning income from Farms, a liquidity provider will be able to boost their profit on users’ token swap transactions.
Example:
If you add Liquidity to $BNB / $BUSD (there must be an equal amount of each token in the dollar equivalent), you will receive BNB-BUSD LP tokens. The number of LP tokens you receive represents your share in BNB-BUSD Liquidity Pool.
❗️ Keep in mind that providing liquidity is subject to impermanent loss, and it may carry certain risks. Make sure you are aware of all the pros and cons of providing liquidity before taking any actions.