# $KAYEN Staking

**What is Staking?**\
Staking involves depositing (locking) your cryptocurrency tokens, such as $KAYEN, into a protocol or smart contract to:

* Support network operations (e.g. validation or governance).
* Earn staking rewards in return for your contribution.

**KAYEN LP Staking (Stake LP Tokens, Earn Rewards)**\
By depositing LP tokens into the Kayen LP Staking pools, users can earn $KAYEN (2) + $xKAYEN (8) tokens as rewards. LP tokens can be created on the Kayen DEX by providing liquidity for the following pairs:

* **KAYEN/CHZ**
* **KAYEN/USDT**

Two dedicated staking pools are available, one for each pair, providing users with options based on their liquidity contributions.&#x20;

(Total reward: 15% of Kayen's total supply will be linearly distributed as LP staking rewards over 3 years.)\
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**Yield Staking (Protocol Fee Rewards)**\
Yield Staking allows users to earn rewards from the protocol's fees by staking their $xKAYEN (KAYEN Escrowed) tokens. Kayen is community-driven and decentralized protocol in which the fees generated from protocol's features are distributed proportionally to the amount of $xKAYEN staked.

* **How It Works:**\
  Kayen protocol allocates a portion of its fees to the staking pool. Users who have staked $xKAYEN can claim rewards based on their ownership ratio in the pool. To access advanced Yield Staking features, users must convert their $KAYEN tokens to $xKAYEN.
* **Reward Type:**\
  Rewards may be distributed in CHZ or any token chosen by the Kayen team, depending on the protocol's decision.
* **Profit Allocation:**\
  A total of x% of Kayen DEX profits is allocated for Yield Staking rewards and managed by the protocol's treasury.
* **Deallocation Fee:**\
  When exiting Yield Staking, a 0.5% deallocation fee is applied. This fee is permanently burned, contributing to a deflationary mechanism that reduces $KAYEN supply over time.<br>

**Yield Booster** \
The Yield Booster is a specialized feature that enhances rewards for **LP Staking** and future **Liquid Staking** activities. By staking $xKAYEN, users can unlock additional rewards:

* Maximum Boost: Up to 250%&#x20;

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