PandaSwap allow you to provide liquidity by adding your tokens to liquidity pools or “LPs”.
When you add your token to a liquidity pool (LP), you will receive PNDLP tokens (PandaSwap’s version of liquidity provider tokens).
As an example, if you deposited $PND and $OKT into a liquidity pool, you would receive PND-OKT PNDLP tokens.
The number of PNDLP tokens you receive represents your portion of the PND-OKT liquidity pool. You can also redeem your funds at any time by removing your liquidity.
Providing liquidity is not without risk, as you may be exposed to impermanent loss.