Farms

📢 Before we begin, let’s talk a little bit about LPing and Yield Farming

Please note that liquidity providing (“LPing”) and Yield Farming are highly risky and should not be attempted by players who are new to cryptocurrencies. There is a chance you may lose all of your tokens and it is generally impossible for the team to fix any mistakes. One of the main risks is known as Impermanence Loss (IL). For more details, please Google it.

LPing is about users adding funds to a liquidity pool with their crypto assets to facilitate trading on a platform. This means they might earn rewards for providing the liquidity.

Liquidity pools help decentralized exchanges (DEXes) that use automated market maker-based systems (AMMs) to allow trading of illiquid trading pairs with limited slippage. This is instead of using traditional order book-based trading systems, such as exchanges, that require funds to be held for every asset in every trading pair to allow trades to be executed.

To engage in LPing, users contribute 2 tokens as a pair which must be balanced 50%-50% by value. Liquidity providers earn a 0.25% fee on all trades proportional to their share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing their liquidity.

As mentioned above, providing liquidity incurs a risk of losing your tokens via Impermanence Loss.

Yield “farming” generally means giving something to a platform (usually by staking assets) to receive rewards (e.g. an annualized percentage yield (APY)). Often this entails adding liquidity to a network and then additionally staking the liquidity provider tokens, or adding liquidity to a market for borrowing and lending. VanSwap encourages users to provide the liquidity required for a decentralized exchange to be able to facilitate swaps between various tokens.

Don’t forget to install and set up your Vtimes/MetaMask/ONTO Wallet for those who don’t have it in order to proceed with the Liquidity Pool.