πΎYield 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.
Yield farming offers the potential for higher rewards but carries a risk of Impermanent Loss. This concept isnβt as intimidating as it sounds, but understanding it is crucial before diving in.
Explore this article about Impermanent Loss from Binance Academy to learn more.
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.
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