# Yield Farming

Yield Farms enable users to earn FSX rewards while supporting FusionX by staking LP Tokens.

To get started, check out our [How to Use Farms guide](https://docs.fusionx.finance/products/yield-farming/how-to-use-farms).

{% hint style="warning" %}
Yield farming offers the potential for higher rewards but carries a risk of **Impermanent Loss**. This concept isn’t as intimidating as it sounds, but understanding it is crucial before diving in.

Explore this [article about Impermanent Loss](https://academy.binance.com/en/articles/impermanent-loss-explained) from Binance Academy to learn more.
{% endhint %}

## Reward Calculations

The Annual Percentage Rate (APR) for Yield Farms combines:

* **LP rewards APR**, earned by providing liquidity.
* **Farm base rewards APR**, earned by staking LP Tokens in the Farm.

Why both? When you stake your LP tokens in a farm to earn FSX, you are still contributing liquidity to the pool, which means you continue to receive LP rewards alongside your farm rewards.

### Calculating Farm Base Reward APR

The **Farm Base APR** is calculated based on the farm multiplier and the total liquidity in the farm. This determines the amount of FSX distributed to the farm.