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

# LP Assets Rehypothecation (LPR)

<figure><img src="https://438227621-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6NLoEeKDsFx1ENKBnxGx%2Fuploads%2FYWKD1BLqEJifd0AV1Hlp%2Fimage.png?alt=media&amp;token=c1bbab57-9cbf-41ed-be77-fd170641d644" alt=""><figcaption><p>LPR<br></p></figcaption></figure>

Snake Finance optimizes yield by **staking user-deposited LP tokens** in Shadow’s farms through the treasury. While users earn **$gSNAKE rewards** from Forest Farms, the protocol simultaneously **stakes these LP tokens** to generate additional earnings in **xSHADOW**.

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