🪙Tokens

PattiePad offers 2 types of Token

1) Standard Token

2) Liquidity Generator Token

How Do Token Standards Work?

BEP-20 is the standard that provides technical specifications for tokens used on the BNB Chain underlying the Binance cryptocurrency exchange. BEP-20 is based on ERC-20 but adapted to the Binance ecosystem.

BEP-20 tokens operate seamlessly with dApps and decentralized exchanges (DEX) on the BNB blockchain. The standard provides a flexible format for developers to launch different forms of tokens. Binance aims to be an alternative platform to the Ethereum blockchain with lower transaction fees and faster processing speeds. BEP-20 provides a framework for how a token can be used, who can use it, and how it operates.

How Do Liquidity Generator Token Work?

Liquidity Provider Tokens, or LP Tokens for short, are a reward mechanism to help facilitate transactions between other different types of currencies. Decentralized exchanges rely on Liquidity Providers to ensure there is an always-on market for the trading of cryptocurrencies. Anytime a liquidity provider deposits their cash into a "liquidity pool" (used to ensure that trades can be executed on the exchange) they then receive Liquidity Provider tokens. These tokens represent the amount of individual contributions to the overall liquidity pool.

As such, Liquidity Provider Tokens are quite popular throughout the landscape of web3 and especially in the context of Decentralized Finance (DeFi). To understand Liquidity Provider Tokens better, it is helpful to dive into the history of LP Tokens – where did they originate from and what need they serve?