# Incubator

![](https://1953751551-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-McV0l-S7kL2Xo-Tuykx%2Fuploads%2FSAbW5ti0G5HwDSKJq1HH%2Fyield-farmer-1-gID_5.png?alt=media\&token=9d9ef8ec-00fb-402d-9f8e-a50b8973f6d9)

Incubator is to primarily incentivize users to provide liquidity in liquidity pools by rewarding them with $EDXA Token. 

When you provide the liquidity in liquidity pools, you will receive a LP token which you can stake in incubator. Once you have stake your token in incubator you will earn more $EDXA Token.

Incubator will have 2% deposit fee. 

Please be aware that providing liquidity is not without risk, as you may be exposed to impermanent loss.

[Learn more about permanent loss.](https://academy.binance.com/en/articles/impermanent-loss-explained)