# Product Guide: LP Farming with lisUSD/USD1 on Lista DAO

**Published by:** [Lista DAO](https://blog.lista.org/)
**Published on:** 2025-05-26
**Categories:** defi, yieldfarm, lending, borrowing, crypto, blockchain
**URL:** https://blog.lista.org/product-guide-lp-farming-with-lisusdusd1-on-lista-dao

## Content

Lista DAO’s latest integrations with USD1, announced on May 16, 2025, bring new DeFi opportunities to the BNB Chain ecosystem. Among the three integrations — USD1 Vault, USD1 in CDP, and lisUSD/USD1 LP — this article focuses on the lisUSD/USD1 liquidity pool (LP). For USD1 holders, this strategy allows you to collateralize USD1 or other assets in Lista’s CDP to mint lisUSD, then provide liquidity to the lisUSD/USD1 pool on PancakeSwap to earn trading fees and rewards. This guide will walk you through the process of LP farming with lisUSD/USD1, highlighting the benefits and risks involved.Why LP Farm with lisUSD/USD1?The lisUSD/USD1 LP pairs Lista DAO’s decentralized stablecoin, lisUSD, with USD1, creating a stablecoin liquidity pool that minimizes impermanent loss compared to volatile asset pairs. Currently the lisUSD/USD1 LP pair has 9.64% APR in pancakeswap. This strategy offers:Passive yields: Earn trading fees and LISTA rewards by providing liquidity on PancakeSwap.Stablecoin Stability: Both lisUSD and USD1 are pegged to USD, reducing price volatility risks.Capital Efficiency: Use USD1 as collateral to mint lisUSD, amplifying your liquidity provision without additional capital.This approach is ideal for USD1 holders seeking consistent, low-risk returns through liquidity provision.Benefits of This StrategyStable Returns: Earn consistent trading fees with minimal impermanent loss due to the stablecoin pairing.LISTA Rewards: Lista DAO often incentivizes LP farming with LISTA tokens, boosting your APY.Low Volatility: Both lisUSD and USD1 maintain a USD peg, reducing exposure to price swings.Step-by-Step Guide: LP Farming with lisUSD/USD1Access Lista DAO’s CDP:Visit lista.org and connect your wallet (e.g., MetaMask or WalletConnect).Navigate to the “CDP” section to access the Collateralized Debt Position system.2. Collateralize USD1 or Other Assets:Deposit USD1 or other eligible assets (e.g., slisBNB, ETH, BTCB) as collateral.Confirm the deposit transaction.3. Mint lisUSD:In the CDP, select the amount of lisUSD to mint within your collateral limit.Confirm the transaction. You now hold lisUSD, Lista DAO’s stablecoin.4. Create the lisUSD/USD1 LP Token:Visit PancakeSwap and navigate to the liquidity section.Select the lisUSD/USD1 pair. Add equal values of lisUSD and USD1 (e.g., 500 lisUSD and 500 USD1).Confirm the transaction to receive the lisUSD/USD1 LP token.5. Farm on PancakeSwap:Go to PancakeSwap’s “Farms” section and locate the lisUSD/USD1 farm.Stake your LP tokens to start earning trading fees (e.g., 0.25% per trade) and additional rewards, such as LISTA tokens or CAKE.Monitor your rewards and claim them periodically.ConclusionLP farming with lisUSD/USD1 is a low-risk, high-reward strategy for USD1 holders. By collateralizing USD1 in Lista’s CDP to mint lisUSD, then providing liquidity on PancakeSwap, you can earn consistent trading fees and LISTA rewards.

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