# AMM Pool

AMM pool participation is ultimately providing liquidity to exisiting token pairs. 

<figure><img src="https://735017864-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FZaUIOGtsn6jMrYVfqgaU%2Fuploads%2FoGPxBam12xynl8mY4XUZ%2Fimage.png?alt=media&#x26;token=58387054-0f5b-4717-9642-c4963377242f" alt=""><figcaption></figcaption></figure>

If you decide to participate in providing liquidity, you must have enough amount for both of the tokens on the pair you wish to provide liquidity with.

For example: LRC/ETH pair

If you want to provide liquidity in this pair, you will need atleast 0.2 ETH and 116 LRC (at the time of writing). Both translates to $34.&#x20;

The respective tokens should have the same value for it to participate in the pool.+

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**IMPORTANT**

Providing liquidity comes with risk. One of which is [impermanent loss](https://www.youtube.com/watch?v=8XJ1MSTEuU0). It is strongly advised to read up on impermanent loss before investing into an AMM pool.
{% endhint %}