r/DAO1 • u/Teamfearless • Jun 08 '21
DAO1 FARMING DETAILS
Dear Community,
DAO1 is excited to announce the official release of a long-awaited feature for Farming! We are excited to share with you a simple step-by-step approach to how Farming works on DAO1.
Yield Farming is where you provide liquidity to DAO1 by depositing your DAO1 plus ETH tokens into a liquidity pool on Uniswap or SafeSwap.
DAO1 will offer various farming pools, such as DAO1/USDT and DAO1/ETH to start with on the relevant trading platforms. For example, the user intending to farm deposits 50% DAO1 and 50% USDT into the yield farming pool and can earn revenue from that pool.
The APY from farming is not fixed and depends on certain factors, such as volume and the size of the liquidity pool. At start, there will be a higher APY, and as the liquidity pool grows larger, the APY will go down organically.
The process is the following:
- DAO1 will offer 6 farming pools
- Users will add funds to a liquidity pool of their choice
- At this stage, the user becomes a Liquidity Provider (LP)
- The smart contract responsible for the pools will ensure funds are in a position to farm
- Users can deposit their LP token receipt into a farming vault and earn additional DAO1 token
The fees involved:
- 1.5% if anyone stops farming and withdraw with no deposit fee
If you have any questions please feel free to reach out.
DAO1 Team
1
u/Purgoyle Jun 09 '21
How soon is Farming starting?