Lower fee tiers mean less cost for traders but smaller rewards for liquidity providers. The pool creator earns rewards proportional to this fee rate from every trade.
Step 5: Burn LP Token
Click the 'Burn LP Token' button and approve the transaction in your wallet..
Required Transaction Approvals:
1x LP Token Approve
1x LP Token Burn
The token approval (Approve) transaction is only required once per LP token. After that, only 1 transaction is needed.
Frequently Asked Questions
What is LP token burning?
LP token burning permanently removes LP tokens, making it impossible to withdraw the corresponding liquidity. Burned LP tokens are sent to the 0xdead address and locked forever.
Why burn LP tokens?
Purpose
Description
Rug Pull Prevention
Prove liquidity cannot be removed to build investor trust
Project Credibility
Demonstrate long-term commitment to the market
Token Value Protection
Ensure trading stability with permanently locked liquidity
Can I burn V3 NFT positions?
No. LP token burning is currently only supported for V2 pools. V3 positions exist as NFTs, each with unique price ranges and liquidity, requiring separate management methods.
Can I recover liquidity after burning?
No. LP token burning is completely irreversible. The liquidity corresponding to burned tokens is permanently locked in the pool and cannot be withdrawn by any means.
Can I burn only a portion?
Yes. You can burn only a portion of your LP tokens while keeping the rest. Use the slider or percentage buttons to select the amount to burn.
What's the difference between burning and removing liquidity?
Action
Result
Remove Liquidity
Return LP tokens and receive back your deposited token pair
Burn LP Token
LP tokens are permanently destroyed and liquidity is locked forever in the pool