> For the complete documentation index, see [llms.txt](https://fatexdao.gitbook.io/fatexdao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fatexdao.gitbook.io/fatexdao/fatexdao-dapps-and-tokens/fatexfi-faq/liquidity-pools-and-paxg.md).
# Liquidity Pools & PAXG
### FATExFi is only a liquidity provider for FATE, which technically, should not be assigned a value until it is converted into a dividend-paying security where members receive a share of the profit from the products/services owned by the DAO.
## Initial Liquidity Pools and Reward Allocations:
**As soon as there is sufficient capital to launch PAXG pools we will likely provide sufficient liquidity and incentives for members to bridge PAXG.**
## Minimize LPs & Offer PAXG
Beyond the below LPs additional ones can be added by DAO vote. BTC, ETH, MATIC paired with PAXG are archived.
PAXG is one of the only regulated tokens that can literally be exchanged for the real asset it is backed by: gold. Although there is PR/marketing appeal for being the only DEX to offer PAXG there is more to it (besides aligning conceptually with FxD, PAXG is not a component of FxD)\
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PAXG is arguably a better pairing for liquidity pooling with FATE (or BTC/ETH) than a stable coin - it doesn't entirely negate the potential hazards of impertinent loss (IL), but it works better:
* Gold has a relatively stable, on average, increasing price and is used to hedge against volatile assets or downtrends.
* If the token it's paired with rises in value you have a more valuable asset, but less of it. However, you have more PAXG, if the value of gold remains the same.
* The tokenomics and fee structures of LP contributions/withdrawals of FATE/FATExFi are designed to have less supply available than demand for FATE. Rewards of FATE increase gradually.
FATE will not be paired with another token that wildly fluctuates in value.
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