> For the complete documentation index, see [llms.txt](https://book.r4re.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://book.r4re.io/tokenomics/lp-tokens.md).

# LP Tokens

<figure><img src="/files/jJfRM4lhVDc50V0yDKQX" alt="" width="375"><figcaption></figcaption></figure>

LP tokens are at the core of how decentralized markets work. We are embracing Liquidity as a reward mechanism and encouraging long term participation in $R4RE through the decentralization of our liquidity pool.&#x20;

LP tokens and automated market makers are a advanced concept but think about them like representing part ownership in the actual value of $R4RE's token trading market itself. LP is how trades and swaps work and by having a fraction of the whole market in your hands as a investor you gain many benefits.&#x20;

In time $R4RE will not have a traditional liquidity lock. The entire community will have the unique right to lock the LP on their own, changing how a project interacts with their investors for the better.&#x20;

We trust our investors and want to extend that trust through the decentralization of our liquidity out to our core believers.&#x20;

There are many benefits to doing this.

* Incredible rewards and trading fee earnings
* Security through decentralization. The LP cannot be "rugged" by an individual
* Unique community owned mindset that disrupts the relationship between project owner and investor for the better&#x20;

If you would like to learn more about how all this tech works and understand liquidity pool tokens more check out the Uniswap wiki for a deep dive!&#x20;

{% embed url="<https://blog.uniswap.org/uniswap-v2>" %}


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