Liquidity Providers (LPs) are network participants who deposit their assets into these pools (i.e. virtual, asset-specific reservoirs), and by doing so, come to own a share of that particular pool for as long as they retain their assets within. In exchange for adding their assets to the pools, LPs earn rewards, as swappers (who use pools to exchange assets) incur fees, which are proportionally distributed to the pool owners.
Chainswitch liquidity pools yield-farming and staking pools.
Users can lock up their tokens earning interest over time,
Make more crypto with your crypto, lock tokens and earn interest over time.
The application leverages blockchain smart contracts across decentralized exchanges (DEXs): Yield-farming also understood as liquidity mining uses liquidity pools from these DEXs. A liquidity pool is basically a smart contract that contains funds. In return for providing liquidity to the pool, LPs get a reward.
How to Add liquidity to get LP tokens:
Select the pools by the token name from Chainswitch DEX list, then click "add" to provide liquidity.
Type in the amount for token pair you want to deposit into the pool.
Click “Deposit” to add liquidity. After adding liquidity, you will receive the LP tokens in your wallets which you can now farm to earn rewards.
Chainswitch staking offers holders a way of putting their tokens to work and earning passive income without needing to sell them. We think of the high yielding rewards as incentives for token holders while they support the project growth.
You may think of staking as a less resource-intensive alternative to liquidity mining (Yield-farming)- In this case, holders do not need LP tokens to utilize the protocol, Just locking your tokens in provided staking pools, does the work.