(
Liquidity
Pool or
Liquidity
Provider token ) Also called "pool tokens" and "liquidity tokens," an LP token is a crypto token given to users who loan their crypto to a liquidity pool. The LP tokens represent a user's share of the pool and can always be redeemed for the original tokens. Liquidity pools enable users to easily swap one token for another on a decentralized exchange. See
crypto liquidity pool and
decentralized exchange.