Farms
With ApeBond Farms, users can stake liquidity provider (LP) tokens to earn rewards.
Farms Purpose
ApeBond Farms are designed to primarily incentivize users to provide liquidity for their favorite DeFi projects. Users who create and stake their liquidity provider tokens in a Yield Farm will earn ABOND tokens or partner tokens (from another project).
Liquidity is crucial to a healthy ecosystem for any DeFi protocol. More liquidity available for tokens means more users can trade them at lower fees!
How Farms Work
Farms allows users to stake the liquidity provider tokens to earn rewards. Farms allow users the ability to generate passive income over an extended period of time. Yield farming is a way to put your LP tokens to work, actively earning rewards on top of the trading fees that you collect as an LP holder.
Creating a liquidity provider token requires users to add equal amounts of two tokens together (For example: ABOND and BNB) in one transaction. The obtained LP tokens can then be deposited into a Farm smart contract to earn rewards.
On the Earn page, you can identify farms by having the following format: "Stake [Token pair], Earn [Token]".
For example: an ABOND-BNB farm could allow users to stake LP tokens they've earned from adding liquidity to the ABOND-BNB liquidity pool to earn ABOND reward tokens.
Continue to the How To Stake In Farms page to learn how to stake LP tokens to earn rewards.
Farms APR Factors
Farm APRs are determined by three primary factors: the price of the input LP token, the price of the reward token (i.e., ABOND), and the amount of input LP tokens in the pool. Let's look at how changes to these three factors affect the APR of a Yield Farm.
If the price of the input LP token increases, the APR will decrease, because each input LP token is worth relatively fewer reward tokens.
If the price of the input token decreases, the APR will increase, because each input LP token is worth relatively more reward tokens.
If the price of the reward token increases, the APR will increase, because the total value of the reward tokens received for the same number of input LP tokens has increased.
If the price of the reward token decreases, the APR will decrease, because the total value of the reward tokens received for the same number of input LP tokens has decreased.
If the number of input LP tokens staked in a Yield Farm increases, the APR will decrease, because the same amount of reward tokens are distributed against more input LP tokens.
If the number of input LP tokens staked in a Yield Farm decreases, the APR will increase, because the same amount of reward tokens are distributed against fewer input LP tokens.
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