An LP token represents a liquidity provider's share of a liquidity pool.
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Short definition
LP Token is an LP token represents a liquidity provider's share of a liquidity pool.
Simple explanation
When users provide liquidity to some pools, they may receive LP tokens that represent their pool position.
Why it matters
LP tokens can be used to withdraw liquidity, track ownership, or participate in farming, but they also carry risk.
Example context
A user who supplies ETH and USDC to a pool may receive LP tokens representing that position.