πFarm
Last updated
Last updated
Yield Farms allow users to earn $CUBI while supporting CUBISwap by staking LP Tokens.
Yield farming can give better rewards than CUBI Pools, but it comes with a risk of Impermanent Loss. Itβs not as scary as it sounds, but it is worth learning about the concept before you get started.
Yield Farm APR calculations include both:
LP rewards APR earned through providing liquidity and;
Farm base rewards APR earned staking LP Tokens in the Farm.
Why? Because when you stake your LP tokens in a farm to earn $CUBI, you're still providing liquidity to the liquidity pool, so you earn LP rewards as well!
So how do we calculate those figures?
The Farm Base APR is calculated according to the farm multiplier and the total amount of liquidity in the farm -- this is the amount of $CUBI distributed to the farm.
On top of that, farmers receive LP rewards for providing liquidity.