> For the complete documentation index, see [llms.txt](https://docs.liquidroyalty.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.liquidroyalty.com/token/token-overview.md).

# Token Overview

There are 3 types of Royalty Token at initial offering:

1. **Unlocked Royalty Token** - pre-sale tokens that are immediately liquid
2. **Locked LP Tokens** - enable more Royalty Token circulation through swapping against Stablecoins
3. **Locked Royalty Token** - Tokens that are vested based on time and shop performance

LP tokens based on Royalty Token allow additional yield types to be collected by liquidity providers, including:

* Royalty Token principal growth and monthly dividend
* Liquidity pool trading fees
* Partnership incentives, including:
  * Stablecoin partnership incentives
  * Brokerage partnership incentives
  * Chain partner incentives

<figure><picture><source srcset="/files/CLTMluxUxgMnQo486uCB" media="(prefers-color-scheme: dark)"><img src="/files/CLTMluxUxgMnQo486uCB" alt=""></picture><figcaption><p>Types of yield from Royalty Token liquidity pools</p></figcaption></figure>

The variety of yield allow LP token yield to be more diversified and less susceptible to impermanent loss (market making inventory loss). Referencing traditional structured products, the yield is further allocated to 2 **distinct yield farms tranches** to suit different risk appetites of LP investors.