Yield Farming
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Participating in Yield Farming can serve as an additional investment opportunity for some. Within the Olympus ecosystem, investors have the chance to earn from Yield Farming Reward Pool, the unique aspect of this pool is that it consists of three tokens: Solana, Ares, and LP tokens.
Yield farming pool consists of three reward tokens, these tokens are collected from across the platform, the sources are as below:
A portion of Lobby entries which will be transferred to the Reward Pool at the end of each Lobby.
Ares mints which happen every time a new Yield Farming stake is created.
Taxes [Solana] from Swap sells.
Taxes [Ares] from transferring Ares tokens.
Taxes [LP Token] for staking and unstaking in Yield Farming.
To learn more about Taxes please read Taxes.
To provide liquidity for Apollo-Solana pair as any other DEX investors need to provide Apollo and Solana based on the price ratio of the tokens pair. In return, they will receive LP tokens, representing their share of the liquidity pool. Investors have the option to stake their LP tokens in Yield Farming, by doing so they become eligible to receive a portion of the Reward Pool based on the amount they have staked. It's important to note that staking LP tokens tokens has a downside. Investors must choose a lock-up duration in days for their tokens and pay a fee for staking and unstaking, which can affect their ability to remove or sell their LP tokens from the liquidity at any time they wish.
Considering the factors mentioned above, Yield Farming is where investors have the potential to earn the most Ares tokens, in addition to the fees earned from the Internal Swaps.
To participate, investors must select a duration for their stake, which can range from a minimum period of 30 days up to a year and a half.
Each stake is assigned a specific "Share Amount" based on its duration and amount. This Share amount determines the earning power of the stake from the reward pool. For instance, a stake with 6000 shares will earn three times more from the reward pool compared to a stake with 2000 shares.
While the stake rewards can be claimed at any time, The staked LP tokens can not be unstaked or collected until the stake duration is finished.
To create well balanced Reward Pool, Yield Farming implements a functionality that allows only 3.33% of the reward pool tokens to be distributed between stakes per day.
