> For the complete documentation index, see [llms.txt](https://arcton.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://arcton.gitbook.io/documentation/liquidity/incentive-program.md).

# Incentive Program

Arcton uses a liquidity approach based on non-fungible staked positions, dubbed spNFTs. By depositing their spNFT into the Nitro Pool, users can participate in the incentive program.

<figure><img src="/files/dwKxLIpb1S8YdxXIMs86" alt=""><figcaption></figcaption></figure>

### How does it work?

Each LP has its own staking positions (or spNFTs) that users can mint by wrapping LP tokens (i.e. depositing them on the relevant contract).&#x20;

Step 1: The user creates a position, by providing startup shares and stablecoins.&#x20;

Step 2: The deposit is sent to a specific corresponding NFTPool contract, and the user receives a staking position NFT. This spNFT can be viewed as a kind of deposit receipt.

{% hint style="success" %}
The spNFT serves as the sole proof of ownership for withdrawing funds; thus, whoever holds the spNFT effectively owns the associated LPs, regardless of the initial depositor.
{% endhint %}

Step 3: The users can deposit their spNFT into the Nitro Pool

Step 4: The user receives additional rewards by participating in the incentive program of the respective startup.

### What kind of rewards do users get?

Users earn extra shares of the startup when they supply liquidity.

We aim to provide a strong incentive for LPs. The amount of shares distributed as an incentive is equal to the amount of shares that the startup adds to the liquidity pool.