How to use farms
Last updated
Last updated
Yield Farming in Farms is a great way to earn CNT rewards on PolyDEX.
Farms require you to add liquidity of two tokens to get respective LP Tokens, which you then stake in the Farm to earn rewards. This lets you earn CNT while still keeping a position in your other tokens!
Yield farming can give better rewards, but it comes with a risk of Impermanent Loss. It’s not as scary as it sounds, but it is worth learning about the concept before you get started.
Check out this great article about Impermanent Loss
Yield farming takes a little work to get set up.
You’re going to need some "LP Tokens" to enter into a Farm with. Farms can only accept their own exact LP Token; for example, the CNT-MATIC Farm will only accept CNT-MATIC LP Tokens.
To get the exact LP Token, you'll need to provide liquidity for that trading pair. So to get CNT-MATIC LP Tokens, you'll first have to provide liquidity for the CNT-MATIC pair.
It may sound intimidating, but it's not too complicated. Let's go through step by step.
Additionally, we have a migration tool in place. If you are already a liquidity provider for CNT-MATIC pair and farming on Cryption Hybrid Staking, you just need to click a button which says withdraw + migrate. More details are in Migration section.
Before you proceed, you'll want to choose a Farm that's right for you. Visit the Farms page and you’ll see a list of available Farms.
You can choose sorting option if you like, such as by APR for the Farms with the highest reward rate currently.
When you find a Farm that you'd like to use, note down the trading pair, e.g. CNT-MATIC in case you need it later.
Now that you've found a Farm to stake in, you will need to add liquidity to get your LP Tokens.
Click on the details link on a farm card.
On the right, you'll see some link. Click on CNT-MATIC
This will open the Add Liquidity page for your Farm's pair. We have a guide to adding liquidity you can follow to get your LP Tokens.
Now that you have your LP Tokens, you’re ready to start staking them in a Farm and earning rewards!
Go back to the Farms page and locate your Farm.
When you’re ready, click the Approve button and confirm your action in your wallet.
If gasless mode is on, then a signature popup will be opened by your wallet. This is so that approval transaction doesn't require any gas.
After the approval is done, click on the + button.
5. A modal will open. Type the amount of LP Tokens you would like to farm with into the field, or just click Max to use all of your LP Tokens.
6. When you have the amount entered, Click on confirm button. Your wallet will ask you to confirm your action.
7. After a short wait, the window will close, and you will see your new staked LP Token balance in the details.
Farming will bring you CNT rewards over time. You can collect these rewards and use them to get more LP Tokens or stake in CNT staker to get XCNT and earn protocol fees.
To collect your rewards, you’ll need to visit your chosen Farm and collect the CNT waiting for you.
Return to the Farms page here.
Find the Farm you staked your LP Tokens in, and click the row to view details. You should see an estimate of your rewards under “CNT earned”.
Click the Harvest button and confirm the action in your wallet. After a short wait, the CNT will be claimed to your wallet for you to use as you like.
Every farm and staking pool has a harvest lock period of 24 hours. That means, you can only claim the reward every 24 hours. This is a protection mechanism placed to achieve multiple things:
To prevent the selling off for farm tokens so that sell pressure is reduced and farming is extremely profitable.
To prevent bots from auto-compounding every minute.
Happy farming!
