pBNB-PIP-LP - Binance Smart Chain
pBNB-PIP-LP is the Liquidity Provider (LP) token in the Pi Protocol ecosystem.
What Is an LP Token?
An LP token is a token issued to liquidity providers on a Decentralized Exchange (DEX). DEX runs on Automated Maker (AMM) protocol that does not require a buyer and seller to agree on a price before a trade can be made. Pancakeswap (PCS) is the leading DEX on Binance Smart Chain.
When the user buys a sCircle with BNB or PIP token, it is not possible to buy the exact number because of a small slippage between the price and sCircle that represents an LP (Liquidity Pair).
- The user wants to buy a sCircle but the Zapper estimates it as 1.1 sCircle
- The user decides to pay for the 1.1 sCircle
- The user will get 1 sCircle and the balance of 0.1 value will be given in pBNB-PIP-LP
- The user can exchange for 1 sCircle when the user has accumulated 1 pBNB-PIP-LP because of the 1:1 ratio
Important Note: The user must always exchange for 1 sCircle with exactly 1 pBNB-PIP-LP or any exact number without decimals.
Anything under and over the exact number will result in transaction failure and the user will lose out on the gas fees.
The following information is only for educational purposes because the Pi Protocol smart contract automatically calculates it:
Formula To Calculate pBNB-PIP-LP:
Value of 1 LP Token = Total Value of Liquidity Pool / Circulating Supply of LP Tokens
Contract Address: 0xf18Ea05686fb7F601E35775f0a14B6D0FcA8303f
Important Note: The user must always copy & paste correctly and triple check