Yield Farms allow users to earn JAMON while supporting JamonSwap by staking LP Tokens.
Yield farming can give better rewards than Jamon Pools, 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.
Yield Farm APR calculations include both:
- LP rewards APR earned through providing liquidity.
- Farm base rewards APR earned staking LP Tokens in the Farm.
Why? Because when you stake your LP tokens in a farm to earn JAMON, you're still providing liquidity to the liquidity pool, so you earn LP rewards as well!
The Farm Base APR is calculated according to the farm multiplier and the total amount of liquidity in the farm -- this is the amount of JAMON distributed to the farm.