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

# Liquidity token

Liquidity token brings the unit of exchange to life as more than a passive numeraire mediating the valuation of other tokens. It becomes a unit of distributed issuance of credit and comes into being through a collateralized credit agreement. This means credit issuance effectively appears as automated. This token is redeemed on demand for any token on offer by an [Economic agent](/economic-agent.md).