> For the complete documentation index, see [llms.txt](https://kaspacom.gitbook.io/kaspacom-defi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kaspacom.gitbook.io/kaspacom-defi/lfg.kaspa-token-launchpad/staking/how-it-works.md).

# How It Works

Staking on KaspaCom is powered by secure contracts that allow users to lock their tokens in return for yield.

When a pool is created, the creator sets:

* **Staking Token** → The asset to be locked.
* **Reward Token** → The asset distributed as yield.
* **Reward Rate** → Number of reward tokens distributed per amount staked over time.

Tokens are deposited into the contract, which tracks balances, lock periods, and rewards.