Liquidity Provision (LP)
What is an LP token?
Liquidity provider (LP) tokens are receipts you get back from a DEX when you deposit a liquidity pair. They represent your position and can be unwrapped into their constituent parts at any time.
Can I deposit LPs directly?
Yes, you can create a pool directly on Thruster v2 (KAP/WETH, KAP/BLAST) and then deposit them on Hyperlock.
What is “impermanent loss”?
Impermanent loss (IL) refers to a temporary loss of value when providing liquidity to a DeFi protocol. This can happen during periods of high volatility where the price of one asset disconnects relative to the other. Sometimes, this can be in the user's favor. Providing liquidity is an advanced practice, and you can read more about IL here.
What are Hyperlock and Thruster?
Thruster is a decentralized exchange (DEX). Hyperlock is a locking and staking protocol that enables users to take their liquidity from partner DEXes (like Hyperlock) and lock it to earn additional rewards.
