We are no less surprised by the idea of decentralized finance (DeFi). Because of its popularization, mainstream traders are already playing a significant part in expanding the blockchain-based decentralized finance ecosystem — one of the greatest victories for DeFi!
Cryptocurrency enthusiasts can passively generate earnings by providing liquidity via Liquidity Provider (LP) tokens. In addition to the financial benefits, most people choose to be liquidity providers out of ethical convictions.
Liquidity providers play an important role in the maintenance of DEX, which in time contributes to developing an independent financial system.
There isn’t a significant difference between LP tokens and regular tokens on the system when it comes to their technological qualities. Uniswap and Sushiswap, two Ethereum-based exchanges, offer ERC20 LP tokens.
Such LP tokens, operating on the ERC20 standard, have the same capabilities as other ERC20 tokens, including being transferable, exchanged, and staked.
However, once traders provide liquidity for a token, it is almost impossible for them to see their tokens in their wallets.
Follow the guide below to view LP tokens on Uniswap.
Viewing LP Tokens in Trust wallet
LP tokens are transferred to the wallet of the individual who supplied the liquidity that was used by the liquidity pool immediately after the transaction has been completed.
You must have the LP tokens to withdraw liquidity in the pool and get reimbursem*nt for any fees accumulated as additional liquidity was added.
If you need to keep track of the LP tokens for any need, they won’t appear in the Trust wallet by default since they’re unique.
Firstly, you must locate the pair address of the liquidity pool to which you just gave liquidity so that you can view the LP tokens in your Trust wallet. You can find the pair address in the analytics section for every pool.
It’s also possible to determine the LP token’s pair address by checking up trading history on Etherscan and seeing where the liquidity was delivered.
Once we have copied this address, we will be able to go to the “Add Token” option and paste it into the box provided.
This option is available if you’ve successfully transferred an LP token to your wallet but still don’t see it in your token list. Here’s a step-by-step instruction to help you get the hang of it.
- Search for the LP Token on your trust wallet
- Get the Token Information
- Fill up the LP Token Details In Trust Wallet
Contents hide
1. Search for the LP Token on your Trust wallet
2. Get the Token Information
1. Using Uniswap V2 Analytics Page
2. Using Etherscan.io
3. Fill up the LP Token Details In Trust Wallet
1. Search for the LP Token on your Trust wallet
Open your Trust wallet and click the dropdown for token lists in the top right corner.
Open your search bar and search for the LP tokens. If you can’t see the LP token, you’ll receive a warning saying, “No Asset Found.”
This means you need to manually add the token via the ‘Add Custom Token option.’
2. Get the Token Information
1. Using Uniswap V2 Analytics Page
After providing liquidity in Uniswap V2, you can easily get the LP token information under the analytics section.
There is a pair address published in each pool’s analytics section.
To get the pair address for your LP token, visit https://v2.info.uniswap.org.
On that page, search for the pair you provided liquidity for in the top right corner.
Click the pair and scroll down to pair information. Copy the pair address.
2. Using Etherscan.io
Alternatively, you can get token information by going to Ethereum blockchain explorer at Etherscan.io.
Copy and paste your public wallet address into the search bar and hit the search button.
Under your wallet dashboard, you can find a summary of your wallet assets in the Overview section.
To view token assets in your wallet, click on the Wallet icon in front of ‘TOKEN.’
Here, you can see your Uniswap Liquidity Provider tokens and other token assets you hold.
Click on the LP tokens to view the pair address.
On the profile summary, just below the LP token’s Overview, you’ll find the pair address. Copy the address.
3. Fill up the LP Token Details In Trust Wallet
After copying the token’s address from the analytics page or on Etherscan, you can now add it to your Trust Wallet.
Open your Trust wallet. Add a new token by clicking on the ‘Add Tokens’ option in your Trust wallet.
Choose the appropriate blockchain network. When you paste or scan the Contract Address, the rest of the information, including the Name, Symbol, and Decimals, will be completed.
If otherwise, you’ll have to manually fill them yourself.
Verify the inputs and make sure it is accurate. If the fields aren’t filled out correctly, the app will display inaccurate balances.
After you have duly followed the above steps, you will be able to see the LP token.
However, if you have difficulties displaying the LP token balance, follow the steps below to manually activate the token.
- Tap on the Options icon at the top right corner.
- All of your wallet’s authorized cryptocurrencies will display on the “Tokens” tab. You will see cryptocurrencies like Bitcoin, Ethereum, BNB, and Smart Chain by default. Also, you will also see manually added token assets here.
- To display your LP tokens manually, paste the token’s contract address in the search bar. It will automatically bring out the LP tokens you added.
- Toggle the button in front of it to view the token and its balance in your wallet.
- Hit ‘Done’ and return to the dashboard.
Once this process is completed, the token will appear in your wallet for you to see. In addition to that, you’ll be able to check your balance and know how many you have in your wallet.
Conclusion
In summary, LP tokens are tokens given to those who have helped a DEX get off the ground by bringing in liquidity.
LP tokens, in their most basic form, are a representation of the proportion of the pool that a certain liquidity provider holds.
Tokens remain under the exclusive management of the liquidity provider until he chooses to withdraw them anytime.
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