DEIN LP staking

What is LP Staking?

LP Staking, also known as Liquidity Provider Staking, is a mechanism that allows users to earn rewards by providing liquidity to a decentralized exchange. In the case of DEIN, LP Staking involves staking DEIN and ETH tokens in the Uniswap liquidity pool to earn additional tokens as rewards.

The LP token's full name is "Uniswap V2 LP Token". However, for clarity and simplicity within this document, we will refer to it as the "LP token."

How does it work?

Obtaining LP Tokens

You can acquire LP tokens by providing liquidity to the DEIN-BNB pair on Pancake Swap. Alternatively, LP tokens can also be obtained through the DEIN app.

The Staking Process

Once you have LP tokens, you can stake them in the DEIN LP Staking feature. This process is similar to DEIN Native Staking in terms of choosing the staking conditions:

Duration (months)	Reward Multiplier
1	1
6	2
12	3
24	4
36	5

Staking DEIN LP tokens

Are there any risks?

Compounded Pool

While participating in DEIN LP staking, it's important to be aware of potential risks, although they are unlikely to occur. One such risk is the extremely remote possibility of the Compounded Pool being fully liquidated, which is designed as a last resort measure. However, DEIN employs various mechanisms to minimize this likelihood and prioritize efficient resource utilization.

We recommend reading more about the Compounded Pool here:

Compounded Pool

Understanding Impermanent Loss

Impermanent loss is a concept associated with providing liquidity in decentralized exchanges. It refers to the temporary loss of value that liquidity providers may experience due to fluctuations in the price ratio of the tokens in the liquidity pool.

Impact on DEIN LP Staking Positions:

If the Impermament Loss occurs, the affected LP staking positions might lose some of their value. They will, however, never be lost or inaccessible. The reward percentage APY's and staking terms will remain unaffected. Withdraw and other position management actions will still be possible, given the required conditions (such as the locking period's expiraton) are met.