Leverage Liquid Staking to Farm Assets on STON.fi.
A guide on earning additional rewards through farming.
As a sequel to Why Liquid Staking is Gaining Traction Over Traditional Staking in DeFi where I talked about — Liquid Staking and all its perks. In this post, I will give a step-by-step guide on Farming from a Liquidity pool on STON.fi.
Prerequisite — A fair knowledge of Liquid staking and Liquidity pools. You can read about them here.
Until now, discussions about DeFi pools rewards were mostly centered around providing liquidity to existing pools. However, with increasing information and knowledge, it is important to highlight another method of earning rewards for supplying liquidity called Farming.
What Is Asset Farming ?
Asset farming is a way for DeFi participants to maximize their returns by leveraging their crypto assets within decentralized platforms. Farming simply is getting additional rewards for supplying liquidity.
For a swift farming experience all you need to do is supply liquidity to the chosen asset pair and confirm your participation by staking LP tokens (they are automatically given to you for supplying liquidity on STON.fi).
For clarity, I will go over how this works practically. Asset farming is a 2-step process — First supplying Liquidity, afterwards the farming proper.
Let’s do this by starting off with providing Liquidity. For easy understanding, I have already explained providing liquidity in a separate post, check it out below. Skip this if you’re already familiar with providing liquidity or if you’ve read it previously.
Moving on to step 2 — Farming.
1 — Go to the ‘Pools’ tab and toggle on the Farming switch to show all available farms. In the search bar, enter the name of the pool you supplied to. Select and click on it.
For this guide, we will use the TON/DOGS pair — the second ‘farm’ on our menu.
2 — Click on the highlighted ‘farm’ option, by the right side of the screen.
3 — Because you already have this asset pair in your liquidity pool, you will see the volume of your liquidity on the filling indicator.
This means you can start farming! Just go ahead and Click the ‘Farm’ option.
4 — Confirm transaction in your wallet and you are good to go. Congratulations !
Closing Up — Perks of Farming
For every time you farm, you receives a certain part of the prize pool, and the higher your share in the pool, the more significant the rewards you will receive. Farming is done more frequently by projects whose tokens are traded on DEX and are interested in having more funds in their liquidity pools so that users can trade in larger volumes.
Stay tuned for our next article, where we attempt to withdraw our assets from our farm on STON.fi.
Get Started with STON.Fi today!
Enjoyed reading this article? Please clap and follow as a show of your support! To learn more about STON.fi
- Head over to the Website: https://ston.fi/
- Check out Crosschain SDK at https://github.com/ston-fi/
- Follow on Twitter: @ston_fi and Telegram: @stonfidex
