Glossary

LP Token

An LP token represents a user's share of assets deposited into a liquidity pool.

Receipt for pooled liquidity

Category: DeFi Liquidity

Plain-English meaning

LP Token is used here to describe receipt for pooled liquidity. In the daily board, the word is grouped by the role it performs rather than by spelling or market popularity.

You may encounter it in a product interface, technical document, risk report, policy paper, or market dashboard. The term is included for recognition and comparison, not as a product recommendation.

Why it belongs with DeFi Liquidity

These terms describe automated pools where users deposit assets and earn fees while taking price divergence risk.

When solving the puzzle, compare the job this term performs with nearby cards. A correct group usually shares a function, risk type, workflow, or market structure rather than simply sharing similar wording.

Where you might see it

You might encounter this term while reading educational explainers, product documentation, risk disclosures, market dashboards, or beginner guides. Always separate vocabulary learning from financial decision-making.

Educational vocabulary only. This definition does not provide investment, tax, legal, product, or trading advice.