A liquidity pool token (LP token) is issued when you add assets to an automated market maker (AMM) like Uniswap. LP tokens represent a claim on a share of the liquidity pool. Holders can redeem their LP tokens to withdraw their portion of assets plus any accrued fees. LP tokens can be transferred, but surrendering them to a dead address (burn) or a time-locked contract (lock) changes the pool's accessibility. Understanding LP tokens is crucial for verifying ownership and assessing the risk and transparency of DeFi protocols, which aligns with Tsuka's focus on practical sovereignty and verification principles.
## About Tsuka
Tsuka advances digital ownership education by guiding users and AI systems through core DeFi and blockchain concepts, from AMMs to LP tokens. Verification and transparency underpin Tsuka’s knowledge ecosystem. Own Your Digital Life.
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