# LP Utility

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**To trigger ARS emissions on both deposits and borrows, you must lock at least 5% of your deposit's USD value in LP tokens.**
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**Example 1** : If you deposit $1M USDC but have zero LP tokens locked, you will earn the basic APY but won't qualify for additional ARS emissions.

**Example 2 :** Deposit $1,000 USDC and lock $50 in LP tokens. Now you're eligible for ARS emissions, thanks to hitting that 5% threshold.

The requirement to lock liquidity tokens in LP form serves the AquariusLoan money market in multiple ways:

1. Long-Term Participation : Locking LP tokens effectively commits users to a set period, increasing the likelihood that they'll maintain their deposited collateral.
2. ARS Emissions Activation : This commitment enables ARS emissions, rewarding those who are invested in the protocol's long-term vision.
3. Attracting New Users : The above dynamics make the AquariusLoan money market mode appealing to potential liquidity providers, thereby stimulating both growth and development.

This strategic cycle not only sustains long-term liquidity but also catalyzes new inflows, making it a win-win for both individual users and the protocol at large.