Getting LP Tokens
Generate and Deposit your LP tokens from your favorite DEXs
In order to utilize DinoSwap Fossil Farms, you must first provide liquidity to generate LP tokens.
Currently, supported LP tokens on Polygon are:
As an example, if you deposited MATIC and USDC into a liquidity pool on SushiSwap, QuickSwap or Dfyn, you would receive MATIC-USDC LP tokens. The number of LP tokens you receive represents your share of the MATIC-USDC liquidity pool.
To generate further yield, the DinoSwap platform also offers the opportunity to put your LP tokens to work on the Fossil Farms, while still earning you a trading fee on SushiSwap, QuickSwap or Dfyn.
There are risks associated with providing liquidity that differ from holding the assets in your wallet and not providing liquidity. This concept is called impermanent loss and you can reference further reading material here.
To make up for impermanent loss risk, whenever a user trades on DinoSwap, the trader pays the underlying exchange fee (example 0.25% on SushiSwap) which goes to the liquidity pool in which the trade was completed. Remember, DinoSwap does not charge any fees in addition to existing fees from the DEX.