> For the complete documentation index, see [llms.txt](https://megabsc-finance.gitbook.io/megabsc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://megabsc-finance.gitbook.io/megabsc/liquidity-pools-and-adding-liquidity.md). # Liquidity Pools and Adding Liquidity ![](https://2488008954-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MgtR4G3GkOPjpD64FpW%2F-MhI8MXykFWQ-i4AZ9dL%2F-MhIFOKJgL55E3HY0dOc%2FLiquidity%20Pools%20and%20Adding%20Liquidity.jpg?alt=media\&token=52b4d359-5cbf-40e0-bfde-59d3e814ae97) **MegaBSC pools** allow you to provide liquidity by adding your tokens to liquidity pools or “LPs”. When you add your token to a liquidity pool (LP), you will receive Flip tokens (MegaBSC’s version of liquidity provider tokens). As an example, if you deposited $MEG and $BNB into a liquidity pool, you would receive MEG-BNB FLIP tokens. The number of FLIP tokens you receive represents your portion of the MEG-BNB liquidity pool. You can also redeem your funds at any time by removing your liquidity. 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](https://blog.bancor.network/beginners-guide-to-getting-rekt-by-impermanent-loss-7c9510cb2f22)​ It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees. Whenever someone trades MegaBSC, the trader pays a 0.2% fee, of which 0.17% is added to the liquidity pool of the swap pair they traded on. For example: * There are 10 FLIP tokens representing 10 MEG and 10 BNB tokens. * 1 Flip token = $1 MEG + $1 BNB * Someone trades 10 MEG for 10 BNB. * Someone else trades 10 BNB for 10 MEG. * The MEG/BNB liquidity pool now has 10.017 MEG and 10.017 BNB. * Each FLIP token is now worth 1.00017 MEG + 1.00017 BNB. To make being a liquidity provider even more worth your while, you can also put your FLIP tokens to work whipping up some fresh yield on the MEG farms, while still earning your 0.17% trading fee reward. ## Social Media Links ### Telegram - ### Twitter - ### Facebook - ### Reddit - ### Medium - ### YouTube - ### GitHub - ### BitcoinTalk -