Farms 101
What Are Farms?
Farms are mechanisms that allow users to stake their liquidity pool tokens in exchange for additional rewards, often in the form of platform tokens (e.g., $DEX). When you provide liquidity to a pool on XenDEX, you receive LP tokens representing your share of that pool. By depositing these LP tokens into a farm, you can earn rewards over time as an incentive for your contribution to the ecosystem.
How Farms Work
Provide Liquidity Add liquidity to a token pair (e.g., XN/USDT or XN/xSOL) to receive LP tokens.
Stake LP Tokens Deposit your LP tokens into the corresponding farm for that liquidity pool.
Earn Rewards As your LP tokens remain staked in the farm, you earn rewards in the form of $DEX or other tokens supported by the farm.
Unstake Anytime Withdraw your LP tokens at any time to redeem your share of the liquidity pool, along with any accrued rewards.
Benefits of Farming
Boosted Rewards Earn additional incentives on top of the trading fees generated by the liquidity pool.
Passive Income Farming allows you to generate consistent rewards without active trading or management.
Strengthened Ecosystem By farming, you contribute to deeper liquidity and a more active trading environment, benefiting the entire XenDEX ecosystem.
Risks of Farming
Impermanent Loss Changes in token prices may reduce the value of your liquidity position compared to holding the tokens individually.
Smart Contract Risk As with all DeFi protocols, farms rely on smart contracts, which may be subject to vulnerabilities or exploits.
Lockup Periods (if applicable) Some farms may require LP tokens to be staked for a fixed duration to maximize rewards.
How to Start Farming on XenDEX
Provide Liquidity Select a token pair, provide liquidity, and receive LP tokens.
Find a Farm Navigate to the Farms section on XenDEX and choose a farm that matches your LP tokens.
Stake LP Tokens Deposit your LP tokens into the selected farm.
Claim Rewards Monitor and claim your rewards at regular intervals or whenever needed.
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