Yield Farming

Yield Farms allow users to earn TP while supporting Trading Post by staking LP Tokens.

Reward Calculations

Yield Farm APR calculations include both:

• LP rewards APR earned through providing liquidity and;

• Farm base rewards APR earned through staking LP tokens in the Farm.

Why? Because when you stake your LP tokens in a farm to earn TP, you're still providing liquidity to the liquidity pool, so you earn LP rewards as well!

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 TP distributed to the farm.

Calculating LP Reward APR

On top of that, farmers receive LP Rewards for providing liquidity. Here's an example of calculating LP Rewards:

To calculate the yearly fees

• Use the 24H volume to calculate the fee share of liquidity providers in the pool

• Use the Fee share to estimate the projected yearly fees earned by the pool (based on the current 24h volume)

• We can now use the yearly fees to calculate the LP rewards APR: That's yearly fees divided by liquidity equals LP reward APR.