Liquidity Pool Staking
Liquidity pool (LP) staking on ZStake is a feature that allows users to stake their LP tokens and earn rewards based on the staking pair's annual percentage yield (APY). LP staking involves adding liquidity to a pool by depositing two different cryptocurrencies in equal proportions. In return, users receive LP tokens that represent their share of the liquidity pool. These LP tokens can then be staked on ZStake to earn additional rewards.
To participate in LP staking on ZStake, users first need to provide liquidity to a pool on a supported decentralized exchange (DEX). For example, they can provide liquidity to the ETH/ZSTAKE pool on Panoramaswap or Andromedaswap by depositing an equal amount of ETH and ZSTAKE tokens. In return, they receive ETH-ZSTAKE LP tokens that represent their share of the liquidity pool. Users can then stake their LP tokens on ZStake to earn additional rewards. When staking LP tokens, users are essentially providing liquidity to the ZStake platform. This allows the platform to offer better liquidity for its users, which benefits everyone involved. In return for staking their LP tokens, users receive rewards based on the staking pair's APY. LP staking on ZStake is a great way for users to earn additional rewards while also providing liquidity to the platform. The process is simple and straightforward, and users can earn rewards on their LP tokens without having to worry about managing their own liquidity pools.