At ApeSwap, we use our farms to primarily incentivize users to provide liquidity for their favorite projects by rewarding them in BANANA. We are foremost a DEX, so the more liquidity we have the more users can trade. It’s in our best interest to encourage liquidity for popular trading pairs on ApeSwap! Using our farms, users can stake their APE-LP tokens after providing liquidity to earn high APYs through our platform.
If you’re considering supplying liquidity to one of our pools in order to farm, it’s important to understand the effects of impermanent loss. For a great guide on impermanent loss, check out this article from Binance Academy.