Searchโ€ฆ
๐Ÿง‘๐ŸŒพ
Farm

Yield Farming

Yield farming is a way to reward users by providing liquidity in the GokuMarket DAO Ecosystem. Users can earn additional GMC on locking their LP token into a smart contract. This incentive is primarily focused on mitigating the risk of impermanent loss that can occur while locking in your liquidity.

Yield Farm APR calculations:

The Yield Farm returns include both your LP rewards APR that you earn through providing liquidity and your farm reward APR that you earn through staking your LP Tokens in the Farm. The calculation is to reward you in all the ways possible for being a liquidity provider.

Calculating Farm Base Reward APR

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 GMC distributed to the farm.

Calculating LP Reward APR

In the WBNB/BUSD pair, we see these values:
Liquidity: $387.42M
Volume 24H: $96.97M
Volume 7D: 709.73M

Calculate Yearly Fees

  • Use the 24H volume to calculate the fee share of liquidity providers in the pool (based on the 0.17% trading fee structure): $96,970,000*0.17/100 = $164,849
  • Next, use that fee share to estimate the projected yearly fees earned by the pool (based on the current 24h volume): $164,849*365 = $60,169,885
  • We can now use the yearly fees to calculate the LP rewards APR: That's yearly fees divided by liquidity: ($60,169,885/$387,420,000)*100 = 15.53% LP reward APR

Initial Farm Offers (IFO)

IFO, like the name suggests, is an initiative that offers users early access to initial farming projects. Participating in IFO is a great way of finding potential projects at a generous cost.