# Staking

**Overview:** A more engaged strategy is to become a **Liquidity Provider (LP)** for $WM by pairing it with another asset (like $S or $USDC) and then **stake them**. The staking pool accepts $WM LP tokens and rewards users with additional $WM tokens. This strategy is sometimes referred to as *yield farming* or *liquidity mining*.

<figure><img src="/files/SI4VeJZw8iHjpYAkGUVj" alt=""><figcaption></figcaption></figure>

**How to Execute:**

1. Acquire $WM tokens (and the paired asset, e.g., $S or $USDC) in the desired amounts.
2. Stake your LP tokens through the WOMO dApp to start accumulating $WM rewards.

**Benefits:**

* The protocol pays out new $WM tokens to LP stakers.
* By providing liquidity, you helping the WOMO ecosystem by ensuring there’s deep liquidity for trading. This reduces volatility and slippage for the token, which benefits all holders in the long run. The project **incentivizes this behavior** because a healthy liquidity pool is crucial.
* Half of the rebased tokens are distributed to stakers, helping deliver extremely high APRs.
* Staked LPs may also benefit from auto-compounding rewards, depending on pool mechanics.


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