Farms (DeFi)

FTWFarm allows users to earn NEP tokens while supporting FTWSwap by staking LP Tokens.

Tutorial video
https://www.youtube.com/watch?v=uGr923OZSuI

ASSET ACTIONS

The FTWFarm is compiled of several asset actions users can take: Stake LP tokens, UnStake, Claim rewards. Users can perform any of these actions in FTWFarm page.

STAKE & UNSTAKE

Users bring LP tokens to FTWFarm after they provide liquidity to earn rewards in NEP tokens. Each liquidity pool earns an annul percentage yield (APY) which is calculated by the total value of liquidity locked vs the value of how many LEP tokens are minted per year for the pool. For example, if there is $100,000 USD total in a pool, and that pool gets 1,000 NEP tokens per day, and each NEP token = $0.10 USD, then 1,000 365 = 365,000 $0.10 = $36,500 USD. $36,500 / $100,000 * 100 = 36.5% APY. Each liquidity pool is allocated a percentage of the total NEP minted in a year.

Users can unstake their LP tokens at any time. Once their tokens are unstaked, users will still own LP tokens but the tokens will no longer be staked into liquidity pools. Users can remove liquidity at any time to swap LP tokens back to the corresponding assets.

CLAIM REWARDS

After staking LP tokens, users mint NEP tokens in real time. Users can then Claim the allocated NEP as Rewards and the claimed NEP rewards are immediately sent to the user's wallet.

IMPERMANENT LOSS

Providing liquidity in the pools is a great way to generate rewards, however, it exposes the liquidity providers to Impermanent loss. Checkout this article by Binance Academy to understand this important concept. https://academy.binance.com/en/articles/impermanent-loss-explained