Yield Farms
KyotoSwap yield farms give users the ability to stake liquidity pairs for those pairs available in the 'FARMS' section. For staking your LP tokens you will receive extra rewards. Some farms reward the user in the DEX native token, KSWAP.
Yield farming is a way to earn more crypto with your current crypto holdings. In return for providing liquidity pairs users are rewarded from the fees generated by the trades in that pair. Users are further incentivised to stake that pair into farms for extra rewards and these extra rewards can then be harvested and placed into other Farms and so on.
KyotoSwap yield farms have a competitive APR to incentivise users to provide liquidity for their favourite projects or pairs. By staking into one of KyotoSwap's yield farms users will earn the DEX native token, KSWAP, or possibly a partner projects token if they have created an LP pair on the farms for their token.
Liquidity pairing is encouraged with rewards for many reasons. The more liquidity pairs on KyotoSwap, the more tokens users will be able to easily trade. The more trades, the more revenue generated from trading fees!
Three main factors affect the APR:
- The price of the reward token ( eg. KSWAP )
- The price of the LP token
- The amount of LP tokens in the pool
KyotoSwap will be managing the APR in the farms manually to ensure competitive reward values. We are working to introduce the Rewards Management System (RMS) that will automate this process not long after launch.
The RMS will ensure that the emissions in the farms are managed to upkeep a constant and steadier APR for those involved. A list of the up to date set APRs are available in the Discord.
Yield Farming can have greater rewards than single staking pools however, this comes with a risk of Impermanent Loss. This isn't always something to worry about, but we do recommend you educate yourself before investing.
Here is a link to an article on Impermanent Loss.
Last modified 5mo ago