# What is LP staking?

LP stands for Liquidity Pool.

If a user contribute $1,000 worth of GW and $1,000 worth of USDT, the user will receive LP tokens for the liquidity pool. These LP Tokens represent their ownership or share in the pool.

{% hint style="info" %}
Providing liquidity to liquidity pools must be in a 50-50 ratio to equilibrium pools.
{% endhint %}

Whenever transactions occur for trading GW-USDT, these liquidity providers (LP token holders) earn the transaction fee reward. 

**LP staking** is an additional rewards to stake their LP tokens. By locking their LP tokens in specific protocols, users can earn additional rewards or incentives, on top of their share in fees generated.


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