# Liquidity Pools

Liquidity pools allow you to provide liquidity by adding your tokens to liquidity pools.

When you add tokens to the liquidity pool, you will receive liquidity pool (LP) tokens.

As an example, if you deposited CONE and **USDT** into a liquidity pool, you would receive CON&#x45;**-USDT LP** tokens.

The number of LP tokens you receive represents your portion of the CONE-USDT liquidity pool.

You can also redeem your funds at any time by removing your liquidity.

Providing liquidity is not without risk, as you may be exposed to impermanent loss.

Whenever someone trades CONE, the trader will pay a 0.2% fee.

## For example:

* There are 10 LP tokens representing 10 CONE and 10 BNB tokens.
* 1 LP token = 1 CONE + 1 BNB
* Someone trades 10 CONE for 10 BNB.
* Someone else trades 10 BNB for 10 CONE.
* The CONE/BNB liquidity pool now has 10.017 CONE and 10.017 BNB.
* Each LP token is now worth 1.00017 CONE + 1.00017 BNB.

To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the CONE Farms, while still earning your 0.17% trading fee reward.[\
](https://coinone-1.gitbook.io/coinone/chan-pin-gong-neng/exchange/how-to-trade)
