> For the complete documentation index, see [llms.txt](https://crocodile-finance.gitbook.io/crocodile-finance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://crocodile-finance.gitbook.io/crocodile-finance-docs/unique-features/lp-assets-rehypothecation-lpr.md).

# LP Assets Rehypothecation (LPR)

<figure><img src="/files/qT3K4HUPl2vbsNvhv4sT" alt=""><figcaption></figcaption></figure>

Crocodile Finance optimizes yield by staking user-deposited LP tokens in Pharaoh or Blackhole's farms through the treasury. While users earn $gCROC rewards from Swamps Farms, the protocol simultaneously stakes these LP tokens to generate additional earnings swapped into $AVAX for CROC backing.

This mechanism enhances rewards, boosts sustainability, and maximizes the efficiency of staked assets—all while ensuring users receive their expected returns.