How do LP tokens earn yield?

LP Staking is the process by which you transfer your tokens to blockchain maintenance in exchange for Rewards in the form of new tokens . In simple words — you “deposit” your tokens and receive Rewards on top of them.

LP token staking Providing liquidity requires staking equal values of different tokens, which generates a LP token. This new LP token is then staked in a new pool in order to earn a yield.

Unlike Syrup Pools, Farms require you to stake two tokens to get LP Tokens, which you then stake in the Farm to earn rewards . This lets you earn CAKE while still keeping a position in your other tokens!