> For the complete documentation index, see [llms.txt](https://swan-swap.gitbook.io/swan-swap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://swan-swap.gitbook.io/swan-swap/getting-started/overview/utility.md).

# Utility

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**Staking**

In the world of crypto, staking can be as straightforward or as intricate as you make it. For many traders and investors, the key takeaway is that staking allows you to earn rewards simply by holding certain cryptocurrencies. However, even if you're just interested in earning staking rewards, it's beneficial to understand the basics of how and why it works.

**How Does Staking Work?**

If the cryptocurrency you own supports staking, you can "stake" a portion of your holdings and earn a percentage-rate reward over time. The reason your crypto earns rewards while staked is that the blockchain puts it to work. Cryptocurrencies that support staking use a “consensus mechanism” called Proof of Stake (PoS). This mechanism ensures that all transactions are verified and secured without relying on a central authority like a bank or payment processor. When you stake your crypto, it becomes part of this crucial process.

**What Are the Advantages of Staking?**

Many long-term crypto holders view staking as a way to make their assets work for them, generating rewards rather than sitting idle in their wallets.

Staking also contributes to the security and efficiency of the blockchain projects you support. By staking your funds, you help make the blockchain more resistant to attacks and improve its ability to process transactions. In some projects, staking participants are also awarded “governance tokens,” which grant holders a say in future changes and improvements to the protocol.

**What Swan Swap Offers:**

* **DEX on** Shape Chain **:** A user-friendly decentralized exchange platform.
* **Yield Farms and Pools:** Opportunities to earn rewards by providing liquidity and staking.
* **NFT Earns:** Participate in earning through NFTs.
* **Staking Rewards:** Earn rewards by staking your tokens.
* **Launchpad:** Access to new projects and token offerings.
