> For the complete documentation index, see [llms.txt](https://docs.gyro.win/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gyro.win/beginners-guide/what-is-lp-staking.md).

# 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.