Where do LP rewards come from?
Every ETH ↔ MOON swap on the pool leaves a 2.5% fee inside its reserves. Your LP token doesn't move, but it represents a share of reserves that keep growing with everyone else's trades.
The liquidity provider cycle
Deposit MOON and ETH, and you get LP tokens back. Stake them to earn extra MOON. When you withdraw, you get MOON and ETH back: a bit more than you put in, thanks to everyone else's trades.