When you provide liquidity in a decentralized protocol like Uniswap or 1inch, you send your cryptos out of your wallet. In order for you to be able to retrieve them, a token is sent to your wallet. This token is a liquidity providing token (LP token).

Some examples: LP ETH-1inch, FARM 1 LP ETH-1inch, LP ETH-ETHUNIV2.

In most cases, it is very complicated, if not impossible, to valuate LP tokens. We therefore recommend that you add them to your list of worthless tokens or value them at $0.00001. On the other hand, if you know their value, you can enter it manually by following this article.

For withdrawal transactions to a liquidity pool, you must use the "Add liquidity" label. It is not necessary to label liquidity return deposits.