Yield Farming
Last updated
Last updated
Yield Farming is a popular decentralized finance (DeFi) strategy that enables users to earn passive income by providing liquidity to decentralized exchanges. In this process, users stake their LP (Liquidity Provider) tokens, which represent a pair of two different currencies, into liquidity pools. In return, they receive rewards, often in the form of another cryptocurrency, such as PUNK tokens, as an incentive for their participation.
In order to obtain LP tokens, two different currencies (we'll take the PUNK-BONE currency pair as an example) must be converted to LP tokens. To get them, you first need to add Liquidity. You can find out how this works here.
Connect your wallet with the site.
Enable the Contract, by pressing the "Enable Contract" button
Click on "Stake LP"
Choose the amount of LP tokens, you would like to stake in the farm (Press "Max", if you want to use all of your LP tokens in the specific farm):
Confirm, as soon as you are ready and follow the instructions of the wallet window
Directly after conformation in your wallet, it sends out the transaction to the blockchain.
After conformation, you can see your staked LP tokens.
Every Farm and Pool has a lock timer. Once you have deposited your LP tokens, the LP tokens can only be withdrawn once the "Locked Until" timer has expired and is at 00:00:00:00.
As soon as LP tokens are added again for the respective farm, the timer is activated again and the time starts running from the beginning.
Most farms and pools have a deposit fee, but very few have a withdrawal fee. As soon as you deposit your LP tokens, a minimum fee is due. This fee is deducted automatically. These fees will mainly be used for further developments and thus directly support the expansion and the value of the PUNK token.
