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Yield Farming
Yield farming in crypto entails adding liquidity to a token pair and staking these LP tokens to with the incentive to provide liquidity over longer term. Projects incentivize yield farming as it enforces long term behavior in liquidity providers and better trading experience for users. Voltswap yield farming encompasses its own decentralized exchange and it has staking derivatives for Volt. Voltswap is able to deliver a compounded yield farming experience by incentivizing users with higher rewards multiplier.
Rewards Multiplier:
In yield farming on Voltswap, LPs start with a multiplier of 1 when they begin the farming which gradually increases to 10 at the end of 10 weeks (70 days). After 10 weeks, further continuation of farming maintains the rewards at multiplier 10. If the pool is continued after the 90 day incentive cycle, the farmer continues to get benefitted by the rewards multiplier of 10.
Minimum Rewards:
For same amount of LP tokens, the minimum rewards received by the users stay same across the 10 weeks.
Bonus Rewards:
For the same amount of LP tokens, the bonus rewards generate higher returns to the yield farmers with time from week 1 to week 10.
Current Rewards:
The total rewards earned by the yield farmer are sum of minimum rewards and bonus rewards and are displayed on the farming page as ‘current rewards’.
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