# Liquidity Pools

Liquidity pools are places to pool tokens (which we sometimes call liquidity) so that users can use them to make trades in a decentralized way. These pools are created by users and decentralized apps (or Dapps, for short) who want to profit from their usage. To pool liquidity, the amounts a user supplies must be equally divided between two coins: the primary token (sometimes called the quote token) and the base token (usually ETH or a stable coin).

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You can provide liquidity to contribute to the Luxy ecosystem! Check the section [2. Provide Liquidity](https://docs.luxy.io/help-center/finance/usdluxy-guide/2.-provide-liquidity)!
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LP tokens are the main DeFi component on Luxy. Owning our LP tokens will provide access to marketplace features and rewards.

20% of the $LUXY supply is allocated to provide liquidity and rewards for $LUXY! It is used for 2 purposes:

Total Incentives:	**20,000,000 $LUXY**

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**Initial LP** 

An initial liquidity pool for a DEX was set up with 12.5% of total incentives. In total, **2,000,000 $LUXY + 200,000 USDC were** allocated to launch $LUXY on SushiSwap, with an opening price of $0.10.

**\[CLOSED] Liquidity Mining**

Total Rewards: **10,000,000 $LUXY**

The liquidity mining program had a duration of 1 year. Our goal was to help attract liquidity into the Luxy Marketplace protocol. Through this, 50% of the tokens directed to incentives were distributed through [4 farms](https://docs.luxy.io/help-center/finance/utility/farm) with a duration of 3 months for users who lock LUXY-USDC LP tokens in the contract.

**NOTE: The LUXY Team was not allowed to participate in any LP incentives.**