Earn/Yield Farming

Liquidity Providers can also increase rewards by staking their LP tokens.

Here is an example of a two-step yield farming on PotatoSwap:

1. A user provides funds for a selected liquidity pair (eg. OKB-USDT) on PotatoSwap and receives LP Tokens, which are a tokenized representative of said user's position.

2. The LP token can then be staked into a smart contract that provides rewards over time.

3. The reward can come in the form of POT tokens or other forms of incentives.

ℹ️Impermanent Loss

Providing liquidity is not without its risk, as one may be exposed to impermanent loss. Kindly refer to the elaborated article by OKX on this page.