Liquidity — The Liquidity Pool, Staking and Rewards

  • There are 10 LP tokens representing 10 CAKE and 10 BNB tokens.
  • 1 LP token = 1 CAKE + 1 BNB
  • Someone trades 10 CAKE for 10 BNB.
  • Someone else trades 10 BNB for 10 CAKE.
  • The CAKE/BNB liquidity pool now has 10.017 CAKE and 10.017 BNB.
  • Each LP token is now worth 1.00017 CAKE + 1.00017 BNB.

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