# How to Stake & Earn

{% hint style="warning" %}
Before staking please ensure you understand the risks and features involved with DeFi liquidity provision. These include but are not limited to:

The risk of impermanent loss.

The proportions of tokens in liquidity pool change depending on swaps made in and out of the pool.
{% endhint %}

{% hint style="success" %}
For more information and education explore some DeFi education [resources](https://www.coinbase.com/en-gb/learn/crypto-glossary/what-is-impermanent-loss).
{% endhint %}

**What is staking?**\
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Staking is a well established DeFi tool rewarding liquidity providers with various types of rewards. At Basejump we allow tokens to allocate a custom portion of their supply to reward Stakers.

<figure><img src="/files/ymJCLKQQBQUdJHYMwrWb" alt=""><figcaption><p>Staking visual representation</p></figcaption></figure>

1\. Shows the act of creating LP - equal quantities (usd value) of ETH and Token X are combined to form an LP token. The act of “staking” is adding these to the liquidity pool. We allow users to do this directly from our token pages with one click\
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2\. Shows the rewards received by stakers. These are sent in **REAL TIME** and can be claimed or compounded every 2 hours.

**What are the benefits?**\
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Staking benefits are multifactorial for both teams and Individual\
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Individual:\
\- Earn more Token X  on top of your asset\
\- Earn fees in the form of ETH from Uniswap\
\- Earn Basejump points from staking\
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Teams:\
\- More liquidity for token means price action from large sells can be absorbed\
\- Stakers lock up supply therefore less token available on open market\
\- Users share their returns from tokens and can influence others to get involved\
\- Reduce the chance of PvP as confident holders stake their tokens for long run\
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**How to Stake & Earn**\
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&#x31;**.** First off find the token staking pool you want to engage with. The easiest way to see all available staking pools is via dashboard. You can browse by token name and see the current APY.

<figure><img src="/files/mHzBPiW1bIHZ2gVleIRP" alt=""><figcaption><p>Dashboard</p></figcaption></figure>

2. Select the token you wish to earn, in order to join the pool you will need to hold Token X and an equivalent amount of ETH to make LP. You can swap on the same page to acquire token.
3. Create and stake LP tokens - **done in one action using stake button** see image below. You will be asked to approve use of your token first, then you will able to stake ( 2 transactions ) Token X & ETH are combined  in equal proportions to form LP tokens. The act of staking is adding these to the Liquidity pool&#x20;


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