what is LP tokens?

the receipt for money put into a liquidity pool (on some exchanges an NFT); whoever holds it can withdraw that share.

burned LP tokens can't be withdrawn, and LP tokens in the deployer's wallet can be pulled any time. locked ones can't be withdrawn until the lock ends, but a lock is only as good as the locking contract and its end date.

related words

liquidity pool a pot of tokens (usually two) held in a smart contract that lets people trade between them.
minting creating new tokens.
honeypot a token contract that lets people buy but blocks or heavily taxes selling.

part of the topic whitepapers: free articles, more words and the guide.

checked 2026-10-20. education, not advice. found a mistake? see corrections.