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Liquidity Farming

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Liquidity Farming

πŸ“ Liquidity: https://apps.standard.tech/farm |

Basic

Community members who have provided liquidity on our DEX (Swap) will be able to lock their LP token $LTR to earn $STND. Different LP pools may yield different numbers of $STND in each block. Members can select the right pool for parking their investment for earning $STND.

How much can I earn from LP Farming?

Depends. Being chain-agnostic, Standard Protocol decides its farming reward based on the following factors,

  1. The total emission rate of our farming pool. defined in our Tokenomics.
  2. The chain you're locking your liquidity. This is because each chain will have different numbers of blocks generated per day.
  3. Other strategic considerations. For some pools, in particular, $STND/$Native and $USM/$Stablecoin are worth setting a higher reward to provide protocol stability.
  4. DAO vote. Which will be covered when DAO is ready.

Setting different rewards among LPs

In Standard Protocol, each farmable LP will be governed by a parameter named Allocation Point (AP). In each block, emitted $STND will be shared among all locked LP based on the weighted share of their AP, which then further dividends among all the contributors based on their locked value. Example as follow:

  • Says 100 STND will be issued per day for a particular chain.
  • Assuming we have the following LP will be farmable
    • USM / DAI : 50 AP
    • USM / USDC : 50 AP
    • STND / MATIC : 50 AP
    • MATIC / DAI : 25 AP
    • DAI / USDC : 25 AP
  • In the above scenario,
    • Total weighted AP = 50 + 50 + 50 + 25 + 25 = 200
    • Locking DAI / USDC will yield 100 x 25 / 200 = 12.5 $STND for entire LP stakers.

DAO

With the growth of the protocol, the DAO function will be introduced later and the community will have a voice in adjusting the LP reward on the farm.

How to Farm

Before farming, please walk through the steps from

  1. Switching Network - Ensure you are on the right network
  2. Deposit Assets or Bridge Assets - Guide yourself on how to bring liquidity to the DEX
  3. Trade - For the tokens to create an LP pair
  4. Manage Liquidity - Add or remove liquidity

Then you are ready to farm and harvest your rewards! πŸ‘¨β€πŸŒΎπŸ₯•

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