# LP Assets Rehypothecation (LPR)

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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.