By adding liquidity to the pool, you will receive LP tokens.
Adding liquidity to the pool will only earn you trading fees. If you would like to earn farming emissions as well, you must create a position, which can be created without first adding LP.
As an example, ETH/USDC LP tokens will be generated if liquidity is added to ETH/USDC. Your share of the ETH/USDC liquidity pool is represented by the LP tokens you receive. While you are providing liquidity to ETH/USDC pair, your LP token will earn automatically a portion of every transaction fee on that pair. Moreover, you can wrap that LP token into staked position (spNFT) to access more utilities and most importantly to earn additional rewards on top of the fee rewards.
- Liquidity providers will receive a slice of each transaction fee.
- With the LP token, you can create staked positions that will generate additional yields from incentive pairs as well as nitro pools.
A video tutorial on adding liquidity is available below, along with a how-to guide and descriptions of each element.