<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/09214733/Loan-staking-pool-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/09214733/Loan-staking-pool-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/09214733/Loan-staking-pool-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2023/08/09214733/Loan-staking-pool.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2023/08/09214733/Loan-staking-pool.webp" alt="Loan staking pool" class="wp-image-3661"/></figure>



If you like DeFi, then you love earning on-chain yield without having to give away your private keys.



The Liquid Loans protocol provides just that with a way to earn $PLS and $USDL by staking <a rel="noreferrer noopener" href="https://www.thecoinzone.com/pulsechain/loan-token-ultimate-guide" target="_blank">LOAN token</a>.



Read on to learn everything you need to know about the LOAN Staking Pool.



<h2 class="wp-block-heading tablecontent">What is the LOAN Token?</h2>



The LOAN Token is the secondary token created by the <a href="https://www.thecoinzone.com/blockchain/explained-liquid-loans-defi-protocol-on-pulsechain" target="_blank" rel="noreferrer noopener">Liquid Loans protocol</a>. When staked, it captures the fees generated by the protocol.



Users can currently obtain <a href="https://www.thecoinzone.com/liquidloans/loan-token-value-proposition/" data-wpil-monitor-id="1228">LOAN token</a> in 3 different ways:



<ol>
<li>Deposit USDL:PLS <a href="https://www.thecoinzone.com/defi/lp-tokens" target="_blank" rel="noreferrer noopener">LP Tokens</a> from <a href="https://www.thecoinzone.com/pulsechain/pulsex-complete-guide" target="_blank" rel="noreferrer noopener">PulseX</a> into the LP Rewards pool on Liquid Loans</li>



<li>Deposit USDL into the <a href="https://www.thecoinzone.com/liquidloans/stability-pool" target="_blank" rel="noreferrer noopener">Stability Pool</a> to become a Stability Provider</li>



<li>Buy LOAN from an exchange</li>
</ol>



<h2 class="wp-block-heading tablecontent">What is the LOAN Staking Pool?</h2>



The <a href="https://www.thecoinzone.com/liquidloans/the-biggest-misconception-about-ll/" data-wpil-monitor-id="1646">LOAN Staking Pool is a smart contract in which users can deposit LOAN tokens to earn the fees generated from the protocol</a>.



The yield generated from the LOAN Staking Pool comes from 2 sources:



<ol>
<li>The Borrowing Fee. Anytime a user <a href="https://www.thecoinzone.com/liquidloans/dont-dump-on-yourself-cash-out-with-liquid-loans/" data-wpil-monitor-id="1024">mints USDL</a> by collateralizing PLS, they pay a fee of 0.5-5% in USDL. This USDL is distributed to the stakers in proportion to their share of the pool.</li>



<li>The Redemption Fee. Anytime a user redeems their USDL for PLS, they pay a fee of 0.5-5% in PLS. This PLS is distributed to the stakers in proportion to their share of the pool.</li>
</ol>



The LOAN Staking Pool is permissionless and <a href="https://www.thecoinzone.com/security/admin-keys" target="_blank" rel="noreferrer noopener">admin key</a> free. Holders of <a href="https://www.thecoinzone.com/liquidloans/top-5-loan-stakers/" data-wpil-monitor-id="1600">LOAN token are not required to stake and stakers</a> can remove their LOAN token at any time. 



<h2 class="wp-block-heading tablecontent">How To Stake LOAN Token in the Staking Pool (Step By Step)</h2>



This section applies to PulseChain Testnet v4, once <a href="https://www.thecoinzone.com/defi/defi-yield-protocol/" data-wpil-monitor-id="233">Liquid Loans</a> is live on Mainnet, this guide will be updated. 



After you have obtained LOAN token:



<ol>
<li>Go to <a href="https://testnet.liquidloans.io/#/" target="_blank" rel="noreferrer noopener">https://testnet.liquidloans.io/#/</a> and connect your wallet. </li>



<li>Choose “Staking Pool” from the left sidebar</li>



<li>Choose the amount of LOAN token you want to stake and click confirm</li>



<li>Monitor your stakes performance</li>
</ol>



<h2 class="wp-block-heading tablecontent">How Much Can You Earn from the LOAN Staking Pool?</h2>



Earning from the <a href="https://www.thecoinzone.com/liquidloans/the-loan-token-halving/" data-wpil-monitor-id="1427">LOAN Staking Pool</a> depend on a variety of factors:



<ol>
<li>Value Borrowed or Redeemed. The more USDL that users borrow, and the more PLS that users redeem, the more fees will be generated.</li>



<li>The Fee Rates. While the redemption and borrowing fees are usually 0.5%, they can increase to as high as 5%. If the rates are higher, then the size of the rewards for the stakers will be higher as well.</li>



<li>Your Share in the Pool. If you have 100% of the LOAN token in the staking pool, you will get 100% of the fees generated by the protocol. If you have 0%, then you will get 0% of the fees. </li>
</ol>

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Use this guide to learn the essentials of the LOAN Staking Pool and how to maximize yield.

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