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While liquidity farming for yield you may want to know the current value of your LP tokens – this guide provides several resources for calculating this value.
Liquidity for decentralized exchanges is created through the use of LPs.For example, in order to provide liquidity to the pair ETH-BNB on Pancakeswap, you deposit BNB and ETH into the trading pool – in return you receive ETH-BNB Pancake LP tokens.
The price of an LP token is dependent on the price of its underlying tokens, but unlike the price of its underlying tokens, calculating the price of an LP requires significant mathematical work. This is why developers have created tools to help users calculate LP prices. A selection of these tools are listed below.
Remember that the value of your LP may change while it is in LP form. Also, the number of underlying tokens that you deposited into a liquidity pool may not be the same when you withdraw, but by using the above tools you will be able to calculate the current value of your tokens.
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