Trade
Trading Type
Spot
Trade crypto freely
Pre-Market
Trade new tokens before they are officially listed
Margin
Magnify your profit with leverage
Convert & Block Trading
0 Fees
Trade any size with no fees and no slippage
Alpha
Points
Get promising tokens in streamlined on-chain trading
Leveraged Tokens
Get exposure to leveraged positions simply
Futures
Futures
Hundreds of contracts settled in USDT or BTC
Options
HOT
Trade European-style vanilla options
Unified Account
Maximize your capital efficiency
Demo Trading
Futures Kickoff
Get prepared for your futures trading
Futures Events
Participate in events to win generous rewards
Demo Trading
Use virtual funds to experience risk-free trading
Earn
Launch
CandyDrop
Collect candies to earn airdrops
Launchpool
Quick staking, earn potential new tokens
HODLer Airdrop
Hold GT and get massive airdrops for free
Launchpad
Be early to the next big token project
Alpha Points
NEW
Trade on-chain assets and enjoy airdrop rewards!
Futures Points
NEW
Earn futures points and claim airdrop rewards
Investment
Simple Earn
Earn interests with idle tokens
Auto-Invest
Auto-invest on a regular basis
Dual Investment
Buy low and sell high to take profits from price fluctuations
Soft Staking
Earn rewards with flexible staking
Crypto Loan
0 Fees
Pledge one crypto to borrow another
Lending Center
One-stop lending hub
VIP Wealth Hub
Customized wealth management empowers your assets growth
Private Wealth Management
Customized asset management to grow your digital assets
Quant Fund
Top asset management team helps you profit without hassle
Staking
Stake cryptos to earn in PoS products
BTC Staking
HOT
Stake BTC and earn 10% APR
GUSD Minting
Use USDT/USDC to mint GUSD for treasury-level yields
More
Promotions
Activity Center
Join activities and win big cash prizes and exclusive merch
Referral
20 USDT
Earn 40% commission or up to 500 USDT rewards
Announcements
Announcements of new listings, activities, upgrades, etc
Gate Blog
Crypto industry articles
VIP Services
Huge fee discounts
Proof of Reserves
Gate promises 100% proof of reserves
Understanding LP Tokens: Your Guide to Earning Through Liquidity Provision
When you provide assets to a decentralized exchange (DEX) powered by an automated market maker (AMM), you receive LP tokens as proof of your contribution. These liquidity provider tokens represent your stake in the overall liquidity pool and serve as your ticket to passive income opportunities in the DeFi ecosystem.
How LP Tokens Work and Their Core Value
LP tokens derive their worth from two fundamental factors: the total value locked in the liquidity pool and the number of tokens in circulation. Think of them as receipts—they grant you ownership rights to a portion of the pool’s assets. The beauty of this system is that liquidity providers maintain full control. If you decide to exit, you can redeem your LP tokens and withdraw your liquidity at any time. Keep in mind that certain platforms impose redemption penalties if you pull out before a predetermined lock-in period ends.
The Real Earning Potential: Yield Farming with LP Tokens
Here’s where things get interesting. Beyond simply holding LP tokens, you can stake them on various DeFi protocols to unlock higher rewards. This strategy, commonly known as yield farming, transforms your liquidity provision into a multi-layered income stream. By staking LP tokens, you’re not just earning fees from trades in the pool—you’re generating additional incentives that compound your returns.
This approach has become one of the most compelling pathways for cryptocurrency holders seeking to generate passive income without actively trading. Whether you’re a seasoned DeFi participant or exploring liquidity provision for the first time, LP tokens offer a structured way to put idle assets to work while maintaining flexibility over your capital.