Introducing Token Farms
- A User Guidance
Farm is a new product that IncrementLabs launch on Flow, to incentivize decentralized exchange’s liquidity providers to add more liquidity to give users a more friendly swap experience (smaller slippage).
The idea is actually not new and is well-known as “liquidity mining”: by providing liquidity to the trading pair on amm dex, staking the received lpTokens and getting some tokens as rewards (plus fees).
The first token farm is for the “Flow-USDC” pair, it will last for 30 days and is initially seeded with 1,000 USDC rewards from us. We’re keeping observing the data and would boost the rewards when necessary. (Update: we’ve already completed the 1st boost and now that the reward pool is 2,500 USDC)
This post serves as a user guidance to the farm. Goto https://app.increment.fi/farm, a token farm looks like below:
1. Get LP (Liquidity Provider) Token:
The first step is to connect wallet and get the corresponding LP Token, by clicking the “Get LP Token” link, you will be directed to Increment Swap’s AddLiquidity page:
We won’t cover this topic too much here, and you can find the specific guidance we’ve published here previously.
2. Stake LP Token to farm
After obtaining the “Flow <-> USDC” pair’s LP Token, go back to /farm and click the “Stake LP” button.
Staking LP Token into the farm is as easy as what you see above. Note that right now the “Unstake” label is not clickable, just because we haven’t staked anything yet.
After staking you will notice that now the “Claim” button is activated, with unclaimed pending rewards accumulating in real time, which are claimable at any time, even after the farm ends in future. All the claimed rewards from the pool are recorded in the “Claimed” section forever as a bookkeeping.
3. Unstake LP Token
The “Unstake LP” button is now visible, and the unstaking process is as simple as staking. Just one thing worth mentioning here: staking and unstaking actions won’t automatically claim the pending rewards for you, so you have to claim them by yourselves.
4. Miscellaneous
* APR data:
Hovering over the apr question mark it explains in detail that the APR is consisted of two parts: apr from the rewards + apr from trading fees.
LPs earn a 0.3% fee on all trades proportional to their share of the pool. Fees are added to the pool, accrue in real time and can be claimed when withdrawing the liquidity from the pool. And we use last 24 hours’ volume data to estimate the fee-based apr.
* ROI calculator:
We’ve also provided a simple ROI calculator, clicking on the calculator icon besides the green apr data (55.10% in our example) to invoke it:
Note that it’s computed based on current apr rates, and the purpose is to ease the yield calculation, and by no means represent guaranteed returns. In reality it’s expected to see apr data dropping right after the staking action for some big stake amounts.
[About IncrementFi]
One-stop DeFi platform to boost liquidity & yield opportunities on Flow blockchain.
Apps: https://app.increment.fi
Twitter: https://twitter.com/incrementfi
Discord: https://discord.gg/increment
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