> For the complete documentation index, see [llms.txt](https://docs.sputnik.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sputnik.network/token-usdsignal/usdsignal-token-distribution/creating-pools/liquidityrewards-pool.md).

# LiquidityRewards Pool

**120,000,000 $SIGNAL** **(\~ 11.72% of the Total Supply)** will be allocated to the **LiquidityRewards Pool**

**LiquidityRewards Pool** - pool to pay rewards for liquidity providers in pair with $**SIGNAL**, as on [Sputnik DEX](/sputnik-network-app-chain/sputnik-dex.md), as on other DEXes

**LiquidityRewards Pool** is directly connected to [**StakingRewards Pool**](/token-usdsignal/usdsignal-token-distribution/creating-pools/stakingrewards-pool.md) 

Once per day, a reward will be distributed from the **LiquidityRewards Pool** to liquidity providers

The amount of reward to be distributed will be equivalent to an 10% APR

In case the number of $**SIGNAL** in liquidity pools significantly exceeds the number of $**SIGNAL** in staking, the missing $**SIGNAL** for the liquidity providing rewards will be taken from the [**StakingRewards Pool**](/token-usdsignal/usdsignal-token-distribution/creating-pools/stakingrewards-pool.md)

**Math:**

Even if 700M of $**SIGNAL** will be in liquidity pools (that is mean no $SIGNAL in staking), the rewards in equivalent to 10% APR from the **LiquidityRewards Pool** need to be:

* 1st year - 70M $**SIGNAL**
* 2nd year - 77M $**SIGNAL** 
* 3rd year - 84.7M $**SIGNAL**

Total: 231.7M $**SIGNAL**

And the total amount of $**SIGNAL** in [**StakingRewards Pool**](/token-usdsignal/usdsignal-token-distribution/creating-pools/stakingrewards-pool.md) and in **LiquidityRewards Pool** is 240M $**SIGNAL**

Alternative Model:

* 1st year - 30M $**SIGNAL** will be distributed by liquidity providers in pair with $**SIGNAL**
* 2nd year - 40M $**SIGNAL** will be distributed by liquidity providers in pair with $**SIGNAL**
* 3rd year - 50M $**SIGNAL** will be distributed by liquidity providers in pair with $**SIGNAL**

Total: 120M **$SIGNAL**

The final Liquidity Reward Distribution Model will be chosen during the testnet

After 3 years, [**Sputnik Network**](/sputnik-network-app-chain.md) will be moved to security of [**Decentralized Digital PostState**](/token-usdsignal/usdsignal-tokenomics/transition-to-poststate-blockchain-security.md), all non-used $**SIGNAL** from **LiquidityRewards Pool** will be burned, and tokenomis will be changed