Yields
Yield farming is one of the most rewarding features of DeFive, offering users the opportunity to earn FIVE tokens by providing liquidity to the platform. As an evolution of WigoSwap, DeFive’s farming mechanisms are designed to maximize rewards while maintaining fairness and sustainability.
By adding liquidity to DeFive, users earn LP Tokens that can be staked to generate FIVE rewards. While yield farming generally offers higher returns than staking FIVE directly, it comes with the risk of Impermanent Loss—a concept that’s easy to understand with proper guidance.
Key Features of Yield Farming on DeFive
Earn FIVE Rewards Users who stake LP Tokens in DeFive farms earn FIVE as a reward. Farms are incentivized with fair APRs, governed by the DAO and veFIVE holders, ensuring a transparent and community-driven reward system.
Fair and Sustainable Emissions DeFive’s yield farming features upgraded emission rates:
80% of emissions (minted FIVE tokens per second) are allocated to liquidity providers, creating a robust incentive structure.
Emission rates are capped at 5 FIVE/sec, with the ability to adjust emissions dynamically for platform sustainability.
Risk vs. Reward While yield farming offers higher rewards compared to staking, users should be aware of Impermanent Loss. This occurs when the value of tokens in a liquidity pool fluctuates, affecting the final value of your assets. Learning about this risk and managing it effectively can help users make the most of farming opportunities.
How to Use DeFive Yield Farms
Step 1: Add Liquidity
Navigate to the “Liquidity” section:
Select the token pair you want to provide liquidity for (e.g., FIVE/S).
Deposit tokens:
Enter the amount for each token and approve the transaction.
Receive LP Tokens:
After depositing, you’ll receive LP Tokens representing your share of the liquidity pool.
Step 2: Stake LP Tokens
Go to the “Farms” section:
Find the farm corresponding to your LP Tokens (e.g., FIVE/S farm).
Stake LP Tokens:
Approve the transaction and stake your LP Tokens in the farm.
Start earning FIVE:
As you stake LP Tokens, you’ll begin earning FIVE rewards.
Step 3: Harvest and Manage Rewards
Harvest rewards:
Visit the farm dashboard and click “Harvest” to collect your FIVE tokens.
Reinvest or use rewards:
Stake harvested FIVE in veFIVE staking to gain governance power, or use them elsewhere in the ecosystem.
Benefits of Yield Farming on DeFive
High Rewards DeFive’s farms are designed to offer competitive APRs, giving liquidity providers meaningful returns for their contributions.
Fair Emissions 80% of all new FIVE emissions are dedicated to liquidity providers, ensuring rewards are aligned with user contributions and ecosystem needs.
Governance Influence veFIVE holders have a say in determining farm APRs, listing new farms, and de-listing underperforming ones, creating a platform shaped by its community.
Easy Entry and Exit With a user-friendly interface and seamless integration, DeFive makes it simple to participate in yield farming and manage your LP Tokens.
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