Liquidity Pools

A liquidity pool refers to crypto currencies contained inside a smart contract. Liquidity providers are users that deposit their crypto assets in liquidity pools and have the chance to earn trading fees and other rewards, like the FISH token in our example.
Users deposit equivalent dollar amounts of two different cryptocurrencies to provide liquidity, and in return, they are given Liquidity Provider tokens (LP tokens). Since the number of LP tokens owned corresponds proportionally to the quantity of liquidity in the overall pool, LP tokens are used to track individual contributions to the liquidity pool.
When you provide liquidity on SwapFish, you will receive Fish LP tokens (Fish Liquidity Provider tokens) as proof of contributing liquidity. For example, if you deposit FISH and ETH into a pool you would receive FISH-ETH LP tokens and these tokens represent a proportional share of the pooled assets.