> For the complete documentation index, see [llms.txt](https://radixplanet.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://radixplanet.gitbook.io/docs/dex/adding-liquidity.md).

# Adding Liquidity

At RadixPlanet we choose to take a different approach than the common lp tokens approach, that common lp tokens approach is simply using fungible tokens to represent the amount of liquidity the user owns for a certain liquidity pool, while proven itself very successful in the past years, it's very contraining if the features it can be offered following this approach

We chose to follow a unique approach of creating a non-fungible token to reqpresent what we call a liquidity position for the user who holds this lp badge

Inside this liquidity badge is a number that indicates how much liquidity the user owns of a certain pool's liquidity just like the amount of normal lp-tokens the user would've received if we followed the normal approach

When a user provides liquidity to a certain pool, he can choose whether to add this liquidity to his already existing position (if any) so the lp amount number in his badge would be modified, or to create a completely new liquidity position, and thus receiving a new lp badge for his newly added liquidity, allows easier tracking of his earnings for a specific liquidity amount


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