Although the principle value is redeemable, the token ratio that the provider deposits may be returned in a different ratio, but still amounting to the same value. This is dependent on the activity of trades in the associated pool.
Example: You provide 1 BNB at a value of $300 and $300 BUSD = A pair worth $600
Pool = BNB $300 BUSD $300 = $600 Liquidity