What are LP Farms?

What are LP Farms?

LP Farms are staking farms for liquidity pool tokens. Participants who provide liquidity on a DEX receive LP tokens representing their stake in the liquidity pool. These LP tokens are staked on an LP farm on TokensFarm in exchange for rewards.

What are the rewards of LP Farms?

The rewards are selected and provided by the crypto project which launched the farm and usually take the form of one of the tokens within the LP pair, although a project can reward farmers with a different token.

How does TokensFarm support LP Farms?

TokensFarm supports all major DEXs, and projects can select their DEX of preference. The project chooses the crypto pair and can choose nearly any pair. The most common choice is their native token and a common stablecoin.

What is dynamic APY?

Dynamic APY means that the fewer participants a farm has, the higher the number of rewards they will receive. With dynamic APY, the opposite is also correct, and the more participants a farm has, the fewer the rewards.

Updated on: 09/12/2024