FARMING
earn farm allows users to earn $IDS while supporting Indoswap by staking LP Tokens.
Prize calculation
Yield Farm APR calculations include both: LPs value APR earned through providing liquidity and; The farm base reward that APR earns from the LP Tokens staked in the Farm. Why? Because when you stake your LP tokens on a farm for $IDS, you are still providing liquidity to the liquidity pool, so you also get LP rewards!
Calculating Farm Base Reward APR
The Farm Base APR is calculated according to the farm multiplier and the total amount of liquidity on the farm -- this is the amount of $IDS distributed to the farm.
Calculating LP Reward APR
In addition, farmers receive LP rewards for providing liquidity.
Here's an example of calculating the prize
LP: Liquidity: $387.42M 24H Volume: $96.97M 7D Volume: 709.73M
Calculate annual fee Use 24-hour volume
to calculate the liquidity provider's share of fees in the pool (based on a 0.17% trading fee structure): $96,970,0000.17/100 = $164,849
Next, use that portion of the cost to estimate the projected annual cost the pool will earn (based on current 24-hour volume): $164,849365 = $60,169,885
We can now use the annual fee to calculate the LP APR reward: It is the annual fee divided by liquidity: ($60,169,885/$387,420,000)*100 = 15.53% LP APR reward
Last updated