# Liquidity Pools & Yield Farming Velar Dharma introduces liquidity pools and yield farming opportunities to reward users for their participation and commitment to the protocol. Users can provide liquidity to various token pairs by depositing an equal value of each token into the corresponding AMM pool. In return, they receive LP tokens representing their share of the liquidity pool. These LP tokens can then be staked in designated yield farming pools to earn additional rewards in the form of VELAR tokens. Yield farming incentivizes users to actively contribute liquidity and helps bootstrap adoption of the protocol. The rewards are distributed based on the proportion of LP tokens staked and the duration of staking. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.velar.com/velar/velar-versions/velar-dharma/liquidity-pools-and-yield-farming.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.