Liquidity Pool vs “Staking” Stablecoins on Pancakeswap?

Hi, I’m sorry in advance for my ignorance because I’m very new to this-

I don’t know how liquidity pools work but I saw a USDC-USDT stablecoin pair on pancakeswap with 12% APR. I didn’t know how to use the V3 LP and fee tiers, so I decided to just test the waters and selected some random values (**Min Price** 1.001 USDC per USDT, **Max Price** 1.0016 USDC per USDT. Somehow on the ROI calculator it says 2.7% APR, I’m not sure what that means, but is this alright?

Then, I also saw an option to “stake farm” under the LP pair, with an APR of 8%. This is confusing because I thought staking stablecoins isn’t a thing? And how would this work, would it replace the liquidity I put in or work on top of it?


Again I’m sorry if I sound really dumb but any help would be really appreciated! <3

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