Glossary
LP tokens
Also written or said as: lp token, liquidity tokens, pool tokens
Receipt tokens that prove a share of a liquidity pool and let the holder withdraw it.
When someone adds liquidity, the pool gives them LP tokens in return. Whoever holds the LP tokens for a coin's pool can pull that liquidity out, which is why traders want them burned. pump.fun burns the LP tokens of the pool it creates when a coin graduates.
Learn it properly inMint, freeze and LP pullsDanger zone · 4 min readRelated words
This guide is for learning. It is not financial advice. Most memecoins go to zero and most people who trade them lose money. Only ever trade what you can afford to lose.