# 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&#x26;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.
