# ANC - UST LP Staking

High exchange liquidity of ANC tokens is crucial for retaining strong deposit rate stability via ANC-incentivized borrowing. It is also critical for Anchor Governance, as a low ANC exchange liquidity enables malicious entities to gain a sufficient supply of ANC and manipulate governance poll results.

As such, a small portion of the ANC supply have been allocated on protocol genesis as incentives for users that provide exchange liquidity to ANC tokens, specifically to the **ANC-UST Terraswap pair**. ANC incentives for ANC liquidity providers are distributed through the use of Terraswap Liquidity Provider tokens.

Terraswap's Liquidity Provider tokens, or **LP Tokens**, are minted uniquely to each exchange pair type and represent a liquidity provider's share of liquidity contribution to the pair. Anchor measures the degree of ANC liquidity contribution by distributing ANC rewards pro-rata to the amount of ANC-UST LP tokens staked to the protocol.

ANC rewards are accrued to LP stakers on a per-block basis, which they can later submit a request to claim. The **Dashboard** section of Anchor WebApp's **GOVERN** page includes an interface for liquidity providers to stake LP tokens and accrue rewards.

The **ANC - UST LP** section of the **GOVERN** page displays:

* **APY**: Annualized percentage yield (APY) of liquidity rewards given to ANC-UST LP token stakers.<br>
* **Total Staked**: Total number of ANC-UST LP tokens staked by all users.

## Providing (Pooling) liquidity to the ANC-UST pair

{% hint style="info" %}
Users must have a balance of both ANC and UST tokens in order to provide liquidity.
{% endhint %}

1\. Navigate to the **GOVERN** page and click on **\[ANC - UST LP]**.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdB4P-kYSBLEEKL2S%2FGovern%20-%20LP%20-%20provide%20-%201.png?alt=media\&token=a8aefcf4-de7d-4b5f-85b2-d51a8948bffa)

2\. Select the **\[POOL]** tab.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdCxIdrt3qJojxvJx%2FGovern%20-%20LP%20-%20provide%20-%202.png?alt=media\&token=a6ef8153-94db-4d29-8aad-47d43de9fea4)

3\. Select the **\[Provide]** tab.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdEYjgIgG_MK9wHjS%2FGovern%20-%20LP%20-%20provide%20-%203.png?alt=media\&token=e8bcbb56-32d7-4ce8-85fe-fef515ef867c)

4\. Enter the amount of ANC tokens to provide liquidity. The WebApp will automatically calculate the amount of UST required. Click **\[Add Liquidity]**.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdGCcjhamQ-qjWWMz%2FGovern%20-%20LP%20-%20provide%20-%204.png?alt=media\&token=443e8841-fd79-46ec-870e-07e94fba2d54)

5\. Station Extension should prompt you to sign a transaction that contains the liquidity provide operation. Confirm the details presented and enter your password to sign.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdIjrMcTKieieUmB-%2FGovern%20-%20LP%20-%20provide%20-%205.png?alt=media\&token=342502a8-da88-4854-a82f-1aa6fd4697cf)

6\. Liquidity provide complete. LP tokens are minted to the user.

{% hint style="warning" %}
LP tokens minted from provided liquidity must be staked to receive LP staking rewards.
{% endhint %}

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdKMEzCtPKc2OLnJR%2FGovern%20-%20LP%20-%20provide%20-%206.png?alt=media\&token=415a0f0a-cea6-4661-9923-d2b55e2fdbc1)

## Withdrawing liquidity from the ANC-UST pair

1\. Navigate to the **GOVERN** page and click on **\[ANC - UST LP]**.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdM78jDBI8leDwnrt%2FGovern%20-%20LP%20-%20withdraw%20-%201.png?alt=media\&token=d162b153-f6da-4e47-82de-43ec6cc3b187)

2\. Select the **\[POOL]** tab.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdNkYPkctQxQLJ08f%2FGovern%20-%20LP%20-%20withdraw%20-%202.png?alt=media\&token=71730d2d-e1db-47b7-869d-68142957281e)

3\. Select the **\[Withdraw]** tab.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdPaZk5eyY_rtbgWj%2FGovern%20-%20LP%20-%20withdraw%20-%203.png?alt=media\&token=233f95ec-2ee5-4b25-8685-1094a9954565)

4\. Enter the amount of LP tokens to burn. The WebApp will display the estimated amount of ANC and UST tokens the user will receive. Click **\[Remove Liquidity]**.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdRkPxGrQRu9hdywW%2FGovern%20-%20LP%20-%20withdraw%20-%204.png?alt=media\&token=fac42a10-06c3-43c3-b818-cfd9e9b7f5d9)

5\. Station Extension should prompt you to sign a transaction that contains the liquidity withdraw operation. Confirm the details presented and enter your password to sign.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdU0j4HDnfRyl-aIt%2FGovern%20-%20LP%20-%20withdraw%20-%205.png?alt=media\&token=07cc57d9-40b7-464e-ba29-f05facd8cd5d)

6\. Liquidity withdraw complete.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdVSyfj_6seGCudso%2FGovern%20-%20LP%20-%20withdraw%20-%206.png?alt=media\&token=5d0ff4a0-57ed-4219-ad16-1d858c09cb32)

## Staking / unstaking ANC-UST pair LP tokens.

1\. Navigate to the **GOVERN** page and click on **\[ANC - UST LP]**.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdXlHiQJr9FNR2DB-%2FGovern%20-%20LP%20-%20stake%20-%201.png?alt=media\&token=f7bd3929-5bf0-42c1-91b2-82c014b7b4ed)

2\. Select the **\[STAKE]** tab.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdZ7plsQkS6gj7VAK%2FGovern%20-%20LP%20-%20stake%20-%202.png?alt=media\&token=2216f3be-30df-46cb-a36a-a089ae7f4b10)

3\. Select whether to stake or unstake.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUd_aqC8e-gMl201lO%2FGovern%20-%20LP%20-%20stake%20-3.png?alt=media\&token=04f6b701-ee6c-45ea-9fea-6c01685b9b00)

4\. Enter amount to stake / unstake and click **\[Stake**] / **\[Unstake]**.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUddjpTUh3Npu4kGij%2FGovern%20-%20LP%20-%20stake%20-%204.png?alt=media\&token=4b5f17da-bf22-4556-ae1f-01e8b1fc9ec3)

5\. Station Extension should prompt you to sign a transaction that contains the stake / unstake operation. Confirm the details presented and enter your password to sign.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdjrrp1n_xd7tpbTI%2FGovern%20-%20LP%20-%20stake%20-%205.png?alt=media\&token=83fa37d6-30d7-4d82-9cf5-e42e3d2bcac8)

6\. Stake / unstake complete.

![](https://3491084666-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MT-6Wb5pEQsulIrcwGJ%2F-MVUXKO1IXIOQATGCi1c%2F-MVUdl21sjfR1i-J4xqt%2FGovern%20-%20LP%20-%20stake%20-%206.png?alt=media\&token=fe816213-f1ef-402d-b026-aae26f399cee)


---

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