By providing liquidity, users automatically obtain LP tokens from the AMM. In most cases, LP tokens represent the crypto assets the user deposited into the AMM along with a proportional scale of the trading fees collected over time in the particular liquidity pool into which the user deposited assets. Because LP tokens typically accrue trading fees over the time the user’s assets remain in the liquidity pool, the LP tokens potentially accrue value over time as well. Uniswap V2 LP token holds a 50/50 ratio of the tokens. Balancer is one of the most innovative AMMs in the ecosystem. Their smart pool system broke the 50/50 ratio status quo and allowed for more sophisticated liquidity pools.