# 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>" %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://book.r4re.io/tokenomics/lp-tokens.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.