> For the complete documentation index, see [llms.txt](https://docs.luxy.io/help-center/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.luxy.io/help-center/finance/introducing-the-usdluxy-token/liquidity-pools.md). # 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). {% hint style="info" %} You can provide liquidity to contribute to the Luxy ecosystem! Check the section [2. Provide Liquidity](/help-center/finance/usdluxy-guide/2.-provide-liquidity.md)! {% endhint %} 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** \ **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](/help-center/finance/utility/farm.md) 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.** --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.luxy.io/help-center/finance/introducing-the-usdluxy-token/liquidity-pools.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.