🧑‍🌾Yield Farming

Yield Farming allows users to earn reward tokens by staking user LP positions (in NFT form).

When user stake the position, the liquidity in the user position will be transferred to farming pool position and used to calculate the LP shares over the TVL of the pool. By doing so, the position cannot be manipulated by supplying to an out-of-range etc as the amounts in the liquidity are used to calculate the shares and utilised as the liquidity of the pools.

The ways of providing liquidity in DerpDEX:

• Add Liquidity

Add Liquidity

• Zap-to-Earn

Zap-to-Earn

Rewards

Reward tokens from yield farming could be multiple tokens. This is the benefits of the yield farming in DerpDEX, which working partnership with other project to incentivise DerpDEX LP.

APR Calculation

Base APR: LP trading fees based on the pool fee tier

Farm APR: Reward emission from farming pool

totalShares: Total Value Lock of the pool

xDERP allocated: Amount of xDERP allocated

durationRemaining: Remaining duration of reward emission

total xDERP allocated: Total allocation of the xDERP for the pool

maxDuration: Maximum duration of the reward emission

userShares: LP shares of the user position

multiplier: Multiplier of the reward emission

$$Farm APR = \dfrac{(totalShares * xDERP allocated * durationRemaining)}{ (totalxDERPAllocated * maxDuration)}$$

Multiplier Calculation

$$Multiplier = \dfrac{farmAPR + userShares}{userShares}$$