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Liquidity Provider Vaults

When you provide liquidity for BREAD on a DeFi market, you receive LP tokens in return. By default, the Bread governance system can’t see those LP tokens — it only tracks BREAD held directly in your wallet. This means liquidity providers would lose their voting power by moving BREAD out of their wallet.

The LP Vaults solve this. By depositing your LP tokens into a vault, the governance system can include your BREAD in its voting power calculations, as if you were holding it directly.

  1. Provide liquidity — add liquidity for BREAD on the listed liquidity pool to receive LP tokens
  2. Stake your LP tokens — deposit them into the vault at app.breadchain.xyz/governance/lp-vaults
  3. Participate in governance — vote on the monthly distribution as normal

Full guide: https://paragraph.com/@breadchain-cooperative/adding-liquidity-to-breadchain-a-complete-guide

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