> For the complete documentation index, see [llms.txt](https://docs.asymmetry.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.asymmetry.finance/ampusd-stablecoin/how-does-ampusd-generate-yield.md). # How does AmpUSD generate yield? *** **How does AmpUSD generate yield?** AmpUSD is built with a two-token model: AmpUSD for transactions and sAmpUSD (staked AmpUSD) for earning yield. AmpUSD alone doesn’t generate yield, but is used for transacting or providing liquidity. Users can stake AmpUSD into the 'Stability Pool', receiving sAmpUSD in return. Yield is primarily generated from interest paid by those borrowing against SPOT, along with additional collateral from liquidations. Users may also use AmpUSD in 'Incentivized Liquidity Pools', allowing both liquidity providers (LPs) and sAmpUSD holders to benefit from enhanced yield options under the two-token model. *** Here’s where the yield trade-off comes into play, leading to higher rewards for both sAmpUSDstakers and liquidity providers: Users have two options with sAmpUSD: To choose between staking their AmpUSD in the stability pool or providing liquidity in pools. 1 AmpUSDf cannot be used in both at the same time, but users can split their AmpUSD stack across either, should they wish. * If a user stakes AmpUSD for sAmpUSD, they forgo the liquidity pool rewards, leaving those rewards for the remaining liquidity providers. This creates a higher yield for LPs because fewer participants are sharing the pool rewards. * If a user provides liquidity, they sacrifice the opportunity to earn yield from the stability pool. As fewer users stake in the stability pool, the share of interest payments and liquidation collateral is spread across fewer sAmpUSD holders, leading to higher individual yields. *** This two-token model offers flexibility, but also creates a healthy tension between staking and liquidity provision, ensuring that both pools remain attractive by rewarding users based on their choices and the overall participation in each pool. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.asymmetry.finance/ampusd-stablecoin/how-does-ampusd-generate-yield.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.