đ ī¸Farming guide
Last updated
Last updated
Yield farming is a dynamic method for earning rewards using cryptocurrency assets. By lending crypto on decentralized exchanges (DEXs) to bolster liquidity for trading, yield farmers can earn fees and interest on their deposits. This innovative approach enables users to leverage their digital assets, generating returns instead of merely holding them. As trading volumes increase, so do the fees distributed to liquidity providers, making crypto farming an enticing avenue for maximizing returns.
As the demand for yield farming surges, Kibble Yield Farming emerges as your gateway to passive income, accessible with just a few taps.
At Kibble, anyone can dive into liquidity provision by depositing KIB tokens into a smart contract and receiving pool tokens in return. These tokens represent the provider's stake in the liquidity pool and can be exchanged for the underlying asset at any time.
Kibble charges a 0.1% transaction fee on all trades, funneling these fees into the reserve pool. When liquidity providers redeem their stakes by burning their pool tokens, they receive a share of the accumulated fees, ensuring a steady stream of rewards.
Farming APR isn't just one number! It's a combination of two key rewards:
LP Rewards APR: This is the portion you earn for providing liquidity to the pool. It's calculated based on the trading fees generated within the pool and your share of the liquidity.
Farm base rewards APR: This APR rewards you for staking your LP tokens in the farm. Essentially, you earn KIB for locking up your liquidity provider tokens (LP tokens).
Breaking down the numbers:
Farm Base APR: This depends on the farm's multiplier and the total liquidity it holds. More liquidity typically leads to a lower base APR, as the KIB rewards are spread across more participants.
LP Rewards APR: This is calculated based on the pool's liquidity and trading volume. Higher trading volume generally translates to a higher LP reward APR, as there are more fees to be distributed among liquidity providers.
Remember: Yield Farm APR is an estimate based on current pool conditions. It can fluctuate depending on factors like trading volume and liquidity levels.
Locate your farm: Visit the Farms page to see a list of available Farms.
Provide liquidity to create a position: Choose your preferred pair and simply click it to open up the âAdd Liquidityâ windown without leaving the Farm page.
Enter the amount of token: Enter the amount of 2 tokens in the trading pair you chose before and Click âAdd Liquidityâ on the position listed, and your wallet will ask for confirmation.
Confirm transaction in your wallet.
Start farming with your LP: Transfer your LP after completing Add Liquidity, you can earn rewards from it
Harvest your rewards:
To harvest KIB rewards from a staked position, simply return to the Farm page, and locate the farm and position you want to harvest.
Click âClaim Rewardsâ on the position, and your wallet will ask for confirmation. After a short wait, the KIB rewards will be sent to your wallet.
To unstake, simply return to the Farm page, and locate the farm and position you want to unstake.
Click âUnstakeâ on the position, and your wallet will ask for confirmation. After a short wait, your LP token will be returned to your wallet, along with all the pending KIB rewards.
To become a Liquidity Provider (LP) on Kibble, users first need to add both types of tokens to the Liquidity Pool associated with their desired trading pair. For instance, if someone wants to provide liquidity to the KIB/TON pool, they would need to deposit a corresponding amount of KIB and TON tokens into the pool. These deposits should ideally be made in such a way that their combined value, when converted to USD, is equal for both tokens.
Upon depositing tokens into the Liquidity Pool, LPs receive liquidity provider (LP) tokens in return, which represent their share of the pool. These LP tokens serve as proof of ownership and entitle the holders to a portion of the trading fees generated by the pool. LPs can earn passive income by participating in liquidity mining or farming, where they stake their LP tokens to earn additional rewards.
As users provide liquidity to the pool and facilitate trading activity, they earn rewards in the form of additional tokens. These rewards are distributed to liquidity providers as an incentive for their participation in the liquidity pool.
The rewards can be distributed in various ways, such as:
Trading Fees: Liquidity providers receive a portion of the trading fees generated by transactions on the platform. These fees are distributed proportionally to the amount of liquidity provided by each user.
Governance Tokens: Some protocols distribute governance tokens to liquidity providers as rewards. These tokens grant holders voting rights and decision-making power within the protocol.
Protocol Tokens: In addition to governance tokens, liquidity providers may also receive the protocol's native tokens as rewards. These tokens can have various utilities within the ecosystem and may provide additional incentives for participation.
