# BarkX Node Mining Pool

The BarkX node network has now been launched. We have set two key goals for the core asset of the node network, BARKX:

* To distribute BARKX fairly and widely to community members.
* To develop the BARKX decentralized trading market into a smooth and stable network infrastructure.

The BarkX node mining pool will achieve these two goals through liquidity mining.

## What is Liquidity Mining

As we all know, in decentralized trading markets based on the automated market maker (AMM) model, the counterparty for crypto token trading is a smart contract. The scale of liquidity in the trading pool determines the trading experience; therefore, sufficiently deep liquidity must be accumulated in the trading pool. However, assuming all liquidity is provided by developers or institutions, a single liquidity provider would bring the hidden danger of over-centralization. We must encourage community members to collaborate and build trading liquidity over which no single party has absolute control.

However, the collaborative supply of liquidity will occupy the capital of each participant, and relying solely on the trading fees captured by the trading pool is not enough to compensate for capital efficiency (for example, in Uniswap V2, it is usually 0.3% per trade). Superior and persistent incentives must exist to attract capital to stay. Liquidity mining is the solution born for this. In liquidity mining, miners deposit the certificates (LP tokens) issued to them when they provide liquidity into the mining pool, thereby fairly acquiring the output distribution of the mining pool. In the BarkX node network, this output is the newly emitted BARKX.

All assets in the liquidity mining system are non-custodial, which means the smart contract code ensures that no one can directly control the crypto tokens in the trading pool and the mining pool.

{% hint style="info" %}
APY is calculated based on the dynamic BARKX ratio within the locked LP.
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## Understanding LP Tokens

LP tokens are liquidity provision certificates. Whenever you deposit liquidity assets (BARKX and USDT) into the trading pool, the smart contract will generate a certain amount of LP tokens for you based on the amount of assets you supplied.

The amount of LP tokens you hold reflects the scale of your contribution to collaboratively building the trading pool. Naturally, after you deposit the LP tokens into the BarkX node pool, the LP tokens constitute your mining power, automatically competing for the mining pool output for you.

When you need to withdraw your assets, you can retrieve the LP tokens according to the mining pool rules, and then submit the LP tokens to the trading pool to retrieve the liquidity assets (BARKX and USDT). It should be noted that the amount of BARKX and USDT represented by the LP tokens will constantly change with public trading, and the amount of change strictly follows the decentralized automated market maker algorithm. Therefore, the amount of BARKX and USDT you retrieve may be different from the amount supplied when the LP tokens were initially generated.