Liquidity pools

and how to add them

The PokéMoon Exchange allows you to provide liquidity by adding your tokens to the smart contract in return for Liquidity Provider tokens, or LPs.

When you add liquidity or create a pool on the PokéMoon platform, you receive PokéMoon LPs in return that represent your share of the pool. You can then use the LP tokens to participate in PokéMoon Gyms and come back to the exchange whenever you want to remove your liquidity to receive your share of the pool back.

Providing liquidity is not without risk and there are many resources available to help explain the phenomenon. Use your favorite search engine and look for "Impermanent Loss".

However, functions are in place to mitigate some of this risk and reward those helping to maintain a healthy market environment. Whenever someone trades a pair on the PokéMoon Exchange, 0.17% of the trade is added to the liquidity pool of the pair they are trading.

For example:

• There are 10 PokéMoon LPs tokens representing 10 MNT and 10 BNB tokens.

• 1 LP token = 1 MNT + 1 BNB

• 10 MNT is traded for 10 BNB.

• 10 BNB is traded for 10 MNT.

• The MNT/BNB liquidity pool now has 10.017 MNT and 10.017 BNB.

• Each LP token is now worth 1.00017 MNT + 1.00017 BNB.

You earn these fees even while your LP tokens are staked in the PokéMoon Gym for double rewards!