FARMING BASICS A liquidity pool is a stock of tokens in a sma | Arcona® - The Digital Land® (en)

FARMING BASICS

A liquidity pool is a stock of tokens in a smart contract, and the larger it is, the more liquid the pair is. These tokens provide the ability to quickly exchange between users.

This reserve is created by liquidity providers. They do not exchange tokens, but invest them for some time in the MUSD / ARCONA pair in equal amounts for both tokens. Every time you add new tokens to the liquidity pool, you receive liquidity tokens (LP).

Liquidity tokens are used for farming, where they bring you a daily reward in $ ARCONA tokens, no matter how much LP you have staked.