> For the complete documentation index, see [llms.txt](https://oboswap.gitbook.io/oboswap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://oboswap.gitbook.io/oboswap/exchange/liquidity-pools.md). # Liquidity Pools ![](/files/PpIfDzGsN068LGdCacII) 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 **OBOS** and **MATIC** into a Liquidity Pool, you'd receive **OBOS-MATIC LP** tokens. The number of LP tokens you receive represents your portion of the OBOS-MATIC Liquidity Pool. You can also redeem your funds at any time by removing your liquidity. ![](/files/szwUck2JXAsuFbXR3Swh) ## 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 Oboswap, the trader pays a 0.25% fee, **of which 0.17%** is added to the Liquidity Pool of the swap pair they traded on. * There are 10 LP tokens representing 10 OBOS and 10 MATIC tokens. * 1 LP token = 1 OBOS + 1 MATIC * Someone trades 10 OBOS for 10 MATIC . * Someone else trades 10 MATIC for 10 OBOS. * The OBOS/MATIC liquidity pool now has 10.017 OBOS and 10.017 MATIC . * Each LP token is now worth 1.00017 OBOS + 1.00017 MATIC . 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 OBOS 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.