> For the complete documentation index, see [llms.txt](https://frozenyogurt.gitbook.io/frozen-yogurt-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://frozenyogurt.gitbook.io/frozen-yogurt-finance/staking-and-liquidity-providing-rewards.md).

# Staking and Liquidity Providing Rewards

## Reward Pool and Staking Pool <a href="#e9cf" id="e9cf"></a>

Liquidity providers receive FROYO rewards that vest for 3 months. Rewards can be claimed before the end of the vesting period but are subject to a 50% early exit penalty.

FROYO from the early exit penalty is distributed to the locked staking pool. The most loyal FROYO holders will stand to gain the maximum benefit upon conclusion of the 3 month vesting period.

The staking pool receives trading fees as well as the FROYO penalty revenue from people who Exit the reward pool early (before the end of the 3 month vesting). The staking pool has no mandatory lock-up.

## Liquidity Provider Rewards <a href="#id-3435" id="id-3435"></a>

80% of the rewards are distributed evenly between liquidity providers of the stablecoin pools  while 20% are distributed to FROYO/FTM liquidity providers.&#x20;

{% hint style="info" %}
Rewards for stablecoin pools are distributed based on the overall TVL of the stablecoin pools, therefore the APYs of these pools are identical.&#x20;
{% endhint %}

The liquidity provider rewards will be as follows:&#x20;

**30% of FROYO supply as rewards within year one as follows:**\
5% — month 1\
4% — month 2\
3% — month 3\
18% — rest of year 1 (2% a month) <br>

**12.5% of FROYO supply as rewards in year two and the remaining 12.5% between years three to five as follows:**\
12.5% — year 2\
6.25% — year 3\
3.125% — year 4\
3.125% — year 5


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