# Staking Pools

<figure><img src="/files/ByZBVsuJ6RilpNqin54I" alt=""><figcaption></figcaption></figure>

In addition to the Farms, there are also "Staking" Pools. With a staking pool MagicSea creates an incentive to hold a certain token longer and earn rewards. For example, the LUM Pool can be used to stake the earned LUM Tokens and earn even more LUM Tokens as Reward. So there is an incentive to hold this certain token and not to sell it.

The difference between a farm and a staking pool is that instead of LP tokens, which represent a trading pair, individual tokens can be staked in this pool. LUM tokens are also distributed as rewards. For a farm, two tokens must always be linked, resulting in an LP token, which can then be farmed. Thus, the impermanent loss is always given as a risk in farming (see paragraph Farms). Since only single tokens are directly staked in a Staking Pool, there is no impermanent loss risk. Different Staking Pools can be offered at MagicSea:

* **Stake Native reward token -> Earn Native reward token**&#x20;
* **Stake Native reward token -> Earn Partner Token**&#x20;
* **Stake Partner Token -> Earn Partner Token**

Some staking pools will only be accessable with holding an specific NFT in your wallet.

#### To Stake a single token follow the simple instructions below:

1. Navigate in the menu to "Earn" -> "Stake"
2. Select Staking-Pool you want to enter and enable Staking-Pool if needed
3. Click "Stake"
4. Enter the amount of tokens you want to stake
5. Click "Confirm"
6. Confirm transaction in wallet
7. Your Tokens are now deposited into the Staking-Pool and will not appear in your wallet anymore


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