📎What is LP staking?

Last updated: 2024-01-15

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.

Providing liquidity to liquidity pools must be in a 50-50 ratio to equilibrium pools.

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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