The liquidity pool is the principal feature of a decentralized cryptocurrency exchange (DEX), functioning as a replacement for centralized exchanges' traditional order books. Briefly explained, a liquidity pool is a smart contract that locks tokens in order to provide liquidity.
In simple terms, LP purchase entails raising the available liquidity in the LP by adding additional Firepin Tokens and BNB. This feature is crucial since it allows Firepin Tokens to appreciate in value over time. We can decide to convert the part of the LP which is in the Firepin Token to BNB or vice versa. To provide our investors’ sense of security, we'll deliver our LPs to a time-locked smart contract that will lock them in for a set amount of time. Tokenholders benefit from this mechanism by having certainty over the total supply of the tokens while being capable of measuring its current valuation. This implies allocating funds within a project with reasonable expectations to return capital appreciation apart by utility.