Liquidity Pools

When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.

LP Tokens

As an example, if you deposited SCADS and BUSD into a Liquidity Pool, you'd receive SCADS-BUSD LP tokens.

The number of LP tokens you receive represents your portion of the SCADS-BUSD Liquidity Pool.

You can also redeem your funds at any time by removing your liquidity.

Liquidity Providers earn trading fees

Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool.

Whenever someone trades on Scads, the trader pays a 0.25% fee, of which 0.17% is added to the Liquidity Pool of the swap pair they traded on.

For example:

• There are 10 LP tokens representing 10 SCADS and 10 BUSD tokens.

• 1 LP token = 1 SCADS + 1 BUSD

• Someone trades 10 SCADS for 10 BUSD.

• Someone else trades 10 BUSD for 10 SCADS .

• The SCADS/BUSD liquidity pool now has 10.017 SCADS and 10.017 BUSD.

• Each LP token is now worth 1.00017 SCADS + 1.00017 BUSD.

To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the CAKE Farms, while still earning your 0.17% trading fee reward.

Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss.

“Simply put, impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.” - Nate Hindman

Limit SCADS in LP

To prevent reward lack and provide enough SCADS in eco-system, it limits SCADS locked in SCADS-BUSD LP is not over than 50% of Current Supply.

It works to keep the flexible run for eco-system and provide high safety for mechanism.