Yield farming, sometimes referred to as Liquidity Mining or Liquidity Farming, is the practice of providing liquidity to a Farm vi depositing the Liquidity Provider Tokens (LPTs) that were minted to represent your share of the liquidity pool you contributed your two assets to generate rewards in the form of additional cryptocurrencies, governance tokens, like WingRiders Token (WRT), NFTs, or a combination of these assets. It should be noted that at the launch of Yield Farming on the Wingriders platform only WRT rewards are available.
Well, it has multiple stages:
- This manual period begins on day 1 of the platform being live and ends Wednesday 20th April 2022 at 21:45 UTC.
- During this period, 350,000 WRT will be allocated to liquidity providers who provide liquidity and keep their Liquidity Provider Tokens (LPTs) deposited. Depositing of LPTs is done in the UI part of the app, in the “Farming” section in any of the available farms. The allocation algorithm will be announced after the IFE ends and we reserve the right to exclude participants who attempt to game the algorithm.
- Everybody who provides at least 1000 ADA equivalent worth of liquidity will be eligible for a bonus. The details of the form of the bonus will be announced after the IFE ends.
- During this period, the platform will take multiple snapshots of the deposited LPTs, then determine the average amount of liquidity the user provided during the IFE to create a baseline for the user’s reward eligibility and proportion.
- This period will last from Wednesday 20nd of April 2022 21:46 UTC till 15th of May 2022 21:45 UTC. It will be divided into 5 epochs, each lasting 5 days and mirroring Cardano’s regular staking epochs.
- During this 5-epoch period, 1,250,000 WRT will be allocated proportionally (250,000 WRT every 5 days) to everyone who provides liquidity and keeps their LPTs deposited in any of the available Farms. Depositing of LPTs is done in the UI part of the app covering Farming. If during this first month, the overall TVL exceeds $125 million for at least 3 consecutive days, an additional amount of up to 500,000 WR tokens will be allocated in the consecutive epochs.
- These rewards will be calculated solely on the proportion of the liquidity of the pools the particular Liquidity provider holds, as represented by the LPTs bound to the holder’s wallet.
- To ensure that rewards are allocated fairly (and to prevent anyone from ‘gaming the system’), only the minimum amount of LPTs deposited by a liquidity provider over the course of a 5-day epoch will be the baseline for calculating their rewards. (Example: John provides 5,000ADA worth of liquidity before the start of the third Farming Epoch and deposits his LPTs in a Farm. On the second day of the third Epoch, he Withdraws 2,000 ADA worth of his LPTs from the Farm and subsequently removes 2,000 ADA worth of his liquidity. The next day, he realizes he doesn’t need the funds and deposits the liquidity back in the pool and also deposits the LPTs in the Farm. This means that for this third Epoch he will be rewarded only for 3,000 ADA worth of liquidity as this was his minimum during that epoch.)
Currently, we cannot commit to any special rewards in the form of other project tokens or NFTs on top of the WingRiders Token but we are in intense discussions with many partners on potential rewards so keep an eye on your Farm and announcements in our Discord server and on Twitter.
If the farm yields rewards other than WRT, the allocated reward will appear shortly after the end of the RFE epoch in the user interface. The WingRiders Tokens in such farms will be visible within few hours.
WRT rewards should become available to harvest from farms a short time after the end of an epoch in which the user had sufficient effective liquidity. If the farm also yields other rewards, these should be available to claim right after they appear in the WR user interface. The user can claim available rewards via Harvest button after which they will be send to their wallet.
All farms that you see in the “Farming” section of the interface are eligible for farming rewards. If there is no farm listed there is no farming reward for that particular Liquidity pool.
All farms are eligible for WingRiders token rewards. If, in the future, there are farms added that reward liquidity providers with only something other than WRT, these will be clearly marked.
No – you have to have your LPTs deposited before the 5-day epoch starts in order to have a logged minimum for the rewards to be received. If you withdraw your farm’s LPTs and/ or withdraw liquidity later in the epoch, you will lower your minimum amount deposited for that epoch, and this lower amount will be used as the basis for reward calculation.
Some of the aggregate data is not displayed right away (for example, the total size of deposited LPTs in a farm). All missing data will be enabled in the coming weeks.
You come after launch in the first days till 20th of April 2022 21:45 UTC. Provide liquidity to one of the Liquidity Pools that are incentivized by a farm. Deposit your LPTs in one of those farms. Stay with the platform till the end of epoch ending on 15th of May 2022 21:45 UTC.