💸Liquidity Pool

Liquidity providers receive Liquidity Pool (LP) tokens for providing liquidity. Users pay fees for trading on DEX, which is allocated to liquidity providers depending on the quantity of LP tokens or percent share they own in the pool.

The Pound Protocol guarantees that token staker' assets are immediately taken and locked for liquidity. The primary goal is to keep the staker informed about the Pounder Protocols performance by avoiding whale dips when they are used in a mass trade-off.

Pounder Protocols secret is Automatic LP. Pounder Protocol has a function that serves as a dual-beneficial implementation for holders. To begin, the contract collects tokens from liquidity providers and adds them to the LP, establishing a stable price floor. Second, the penalty serves as an arbitrage-resistant mechanism, ensuring that the volume of $POUND remains safe as a reward for the Pounder Protocol.