LP Tokens

LP tokens represent your ownership of a liquidity pool. They're the foundation of the entire Opals economic model.

When you provide liquidity to Uniswap, you receive LP tokens. These tokens represent your share of the ETH-Token pair. As trading happens and fees accumulate, your LP tokens become more valuable.

LP tokens are not just receipts. They're ownership certificates. They entitle you to a portion of the trading fees. They represent your stake in the project's success.

In Opals, LP tokens are locked permanently. This prevents rug pulls. Once locked, they cannot be withdrawn. The liquidity stays in the pool forever.

This creates a new kind of security. Not based on trust, but on mathematics. The liquidity cannot be removed because the withdrawal function doesn't exist.

LP tokens also generate income. Every trade pays fees. These fees get distributed to LP token holders. The more trading happens, the more income you earn.

The distribution is proportional. If you own 1% of the LP tokens, you receive 1% of the fees. If you own 10% of the LP tokens, you receive 10% of the fees.

LP tokens are tradeable. You can sell them on secondary markets. But the economic rights stay with the tokens. Whoever holds them controls the rewards.

This creates a liquid market for project ownership. You can buy and sell your stake without affecting the underlying liquidity. The pool stays stable while ownership changes hands.

LP tokens also enable governance. They can be used for voting on protocol changes. They represent your voice in the project's future.

The beauty of LP tokens is their permanence. They create lasting value. They generate ongoing income. They represent real ownership of real assets.

This transforms speculation into ownership. You're not just betting on price movements. You're owning a piece of the project's success. You're earning from its actual usage.

LP tokens are the bridge between Patron Cards and real value. They're what makes the entire system work. They're what creates sustainable, long-term value.