Farms
Last updated
DeltaPrime
Launch AppLast updated
In DeFi, (yield)farming refers to the process of providing liquidity, with the intention of gaining passive income - yield. Although plenty of protocols and investors alike use liquidity providing and farming interchangeably, on DeltaPrime we make one direct distinction:
Where Liquidity Providing always provides liquidity from your Prime Account straight into an exchange, Farms are third parties optimizing this process. Think for example about providing your Pangolin LP tokens to Yield Yak, which autocompounds your LP to turn your APR into APY. Or exploiting Vector Finance's vast Ve-token reserves, to increase your yield in AMMs like Platypus or Trader Joe.
Every layer from your wallet to the DEX increases smart contract risk, so it is important to always DYOR, no matter through which channels your funds flow. That being said, with good due diligence, farms can increase your returns far beyond what a single DEX could do.
The Farms section of your portfolio shows the following elements:
The Asset shows the (LP-)token you can stake here, the DEX it ends up in, and the available farms. Know that different farms operate in different ways: For example: Yield Yak might update with intervals and reward in the asset provided, Vector rewards continuously, and might reward in a different token like PTP or PNG. To make sure you understand how different protocols interact with provided liquidity, please read the documentation of the farm in our integrated protocols list.
"Staked" of the pool shows how much tokens are currently staked across farms. Below that you have the amount of tokens, as well as the current dollar-value of the tokens staked in individual farms. If your yield gets compounded, this number will slowly rise. The value of your tokens might rise or drop as the underlying assets appreciate or depreciate in price.
Here it shows the number of tokens you have ready to invest. This only shows the tokens that are not yet deposited into any farm, and can be invested immediately. If you don't have the tokens available, make sure to swap into them on your Exchange and Create the necessary LP token in Pools.
This is the APY that the farm gives at 100% health. By placing your full portfolio in this farm, without borrowing, you can expect to get the shown percentage in rewards, over the course of one year. This number does not take into account potential impermanent loss.
Multiply your returns. Sometimes, your returns can be multiplied through borrowing and investing. This depends on the yield received from the pool and the interest paid for borrowing. Where the Min. APY shows the returns with 100% health, the Max APY shows the returns with 10% health, if you put your full portfolio into this farm. While you could further lower your health for a higher APY, this also brings the account closer to liquidation. In the end, DeltaPrime provides you the freedom to manage your own risk, so the exact place on the 0%-100% health meter where you feel confident is all up to you. This number does not take into account potential impermanent loss and assumes you are borrowing the asset with the lowest borrowing APY.
Some farms build on top of the same pools. Here you see which farms have created a strategy on this specific pool. While you are free to go full-on degen, hunting the highest APR/APYs, you might also have a preference for one farm over the other. This can be based on factors like: whether it autocompounds, whether ve-tokenomics are in play, the community or brand of that protocol, or anything else you might discover through your due diligence. To read up on the protocols integrated, check out our protocol list.
