🧑🌾Yield Farming
Yield Farms allow users to earn PPI while supporting Swappi by staking LP Tokens.
Last updated
Yield Farms allow users to earn PPI while supporting Swappi by staking LP Tokens.
Last updated
Check out our How to Use Farms guide to get started with farming.
To find the farms' smart contract addresses, see Contract Addresses.
Yield Farm APR calculations include both:
LP rewards APR earned through providing liquidity
Farm base rewards APR earned staking LP Tokens in the Farm.
Why? Because when you stake your LP tokens in a farm to earn PPI, you're still providing liquidity to the liquidity pool, so you earn LP rewards as well!
The Farm Base APY is calculated according to the farm multiplier and the total amount of liquidity in the farm -- this is the amount of PPI distributed to the farm.
A quick example of calculating LP rewards:
If in the CFX/USDT pair, we see these values:
Liquidity: $100M Volume 24H: $10M Volume 7D: 200M
Calculate yearly fees
Use the 24H volume to calculate the fee share of liquidity providers in the pool (based on the 0.17% trading fee structure): $10,000,000*0.17/100 = $17,000
Next, use that fee share to estimate the projected yearly fees earned by the pool (based on the current 24h volume): $17,000*365 = $6,205,000
We can now use the yearly fees to calculate the LP rewards APR: That's yearly fees divided by liquidity: ($6,205,000/$100,000,000)*100 = 6.205% LP reward APR
