In exchange for adding liquidity to a pool, users receive LP tokens. These LP tokens (S*USDC) represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any time.
Liquidity providers can stake their LP Tokens to gain STG reward on Stargate farming.
Stargate liquidity providers can earn stablecoin rewards on every Stargate transfer.
Around 0.06% fee is collected on each transfer; 3/4 of this fee (0.045% fee) goes to the liquidity pool, and 1/4 of this fee goes to the protocol treasury governed by veSTG holders.
The earning is automatically accrued for liquidity providers which means the LP token value will increase during deposit period. So they will get more stablecoins back when they remove liquidity.
Of course, the return will depend on deposit amount, period and the transfer fee generated during deposit period for the respective pool..