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AMM Fundamentals and Uniswap v2·Lesson 4 of 31·24 min

Providing Liquidity and LP Tokens

This lesson is for enrolled learners

The concept Depositing into a constant-product pool means supplying both assets in the pool's current ratio. In return, the pair contract mints LP tokens representing your proportional claim on the pool's total reserves — if you supply 10% of the pool's value, you receive LP tokens equal to 10% of total LP supply. These tokens are themselves transferable ERC-20s; they……

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