> For the complete documentation index, see [llms.txt](https://guides.instadapp.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guides.instadapp.io/protocols/liquity/staking-lqty.md).

# Staking LQTY

Liquity users and stability pool providers earn **LQTY**. **LQTY** can be staked into Liquity contracts to earn a portion of the *Redemption and LUSD borrow fees*. 

![Claimed LQTY and ETH are claimed to your DSA Balance](/files/iboApS6esAfcGYJX48la)

### Earn LUSD and ETH by Staking LQTY

LQTY staking is not a constant but is derived from activity in the Liquity protocol. LQTY stakers received a share of borrow fees in LUSD as well as ETH gained from redemptions.

The LUSD gained here is created when users generate LUSD, they pay up front a borrow fee that is shared with LQTY stakers.

Redeemed ETH is ETH gained when the protocol 'redeems' the riskiest troves, this is different than the ETH gained from liquidations. You can learn more about how redemption work in the Liquity Docs here - [Redemptions and LUSD Price Stability](<https://docs.liquity.org/faq/lusd-redemptions >)&#x20;

{% hint style="info" %}
**LQTY** is not a governance token, Liquity is self described as 'governance free.' The LQTY token is solely for use in Staking as described above.
{% endhint %}