> For the complete documentation index, see [llms.txt](https://pod-finance.gitbook.io/welcome-to-pod-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pod-finance.gitbook.io/welcome-to-pod-finance/staking-and-multi-rewards.md).

# Staking & Multi-Rewards

Staking, yield farming and many other strategies, are methods for earning passive income through staking liquidity tokens into vaults or farms. Yield farming promises a return (y(t)), commonly paid in one token.

For the particular case of **Pod**, vaults are called **PODs**, and yield farming returns are paid in several tokens (i.e., multi-rewards). 

The annualized yield depends on several factors including the rate of new reward tokens generated per block, the total redistributed rewards for staking (M(t)), and farm-specific multiplier (*mt*), the total liquidity staked in the farm (*staked, Lstaked,t*), and the price of the particular underlying asset (*Pu).* The creation rate of new rewards tokens is approximately 40 tokens every three seconds, leading to an annualized yield formula:

$$
y\_t = \left( \frac{365 \times 28,800 \times 40 \times m\_t}{M\_t} \right) \left( \frac{P\_{\text{u}, t}}{L\_{\text{staked}, t}} \right)
$$

On the other hand, if new reward tokens are being added as incentives during the current staking period, the aggregate multiplier does not equal the sum of all multipliers across all vaults. Additionally, it defines the realized farm yield between time $$t$$ and $$t+h$$ based on the change in the price of POD and the yield over that period, adjusted for a 365-day year.

$$
\frac{P\_{\text{u}, t+h}}{P\_{\text{u}, t}} \left( \sum\_{n=1}^{h} \frac{y\_{t+n-1}}{365} \right)
$$