What is the MLP token?

The MLP token is a loyalty reward token for existing Liquidity Pool Partners as a show of appreciation for Partners’ participation in the program. The token allows those who can’t afford to participate in the pool to join with the MLP token and reap rewards from the platform, whilst having access to immediate liquidity.

What are liquidity provider tokens (LP tokens)?

Liquidity provider tokens or LP tokens are tokens issued to liquidity providers on a decentralized exchange (DEX) that run on an automated market maker (AMM) protocol. Uniswap, Sushi and PancakeSwap are some examples of popular DEXs that distribute LP tokens to their liquidity providers.

What are uniswap LP tokens?

On Uniswap, these tokens are referred to as either pool tokens or liquidity tokens. Curve refers to them as liquidity provider (LP) tokens. Though the terminology may be different, the definition is the same. LP tokens are mathematical proof that you provided assets to a pool — and LP tokens hold the claim to getting those assets back.

How do LP tokens work?

Perhaps the simplest use case for LP tokens is to transfer ownership of their associated liquidity. Some LP tokens are tied to specific wallet addresses, but most allow for the free transfer of the tokens. For example, you could send BNB-wBNB LP tokens to someone who could then remove the BNB and wBNB from the liquidity pool.