Farming
Stake your Liquidity Positions to earn additional incentives.
Yield Farming allows users to earn Gmeow's incentives while supporting the protocol by staking LP tokens (for V2 AMM) or LP NFT (for V3 AMM).
Common yield farming is sometimes boring because the farmers can only earn 1 type of reward. That's why we decided to add another off-chain incentive as an additional layer of rewards for participants. This will help bootstrap the protocol's liquidity in the long run and maintain a sustainable yield-first economy.
You will earn the following incentives while participating in Gmeow's farms:
TREAT: This is an off-chain metric that is used to calculate your additional incentives. Unlike xGM rewards, TREAT was designed to incentivize long-term Liquidity Providers from the ground up. The acquired TREAT points will be automatically redeemed into PAW and xGM every 7-day epoch upon the mainnet launch.
Please keep in mind that there will not be a certain reward rate for TREAT conversion. Since we take part of our protocol earnings to distribute back to TREAT holders, the more swaps in an epoch, the more PAW and xGM will be sent out to anyone with a TREAT balance.
FAQ
What occurs if my liquidity position exits the range while staking in the Farm?
In V3, only active liquidity positions within the specified range will receive rewards from farms. Once the price moves out of the range, rewards for the position cease. However, if the price returns within the range, rewards for the position resume without any additional actions needed from stakers.
Would it be more advantageous to consistently farm using a liquidity position with a narrower range?
Concentrating your liquidity within a smaller price range can increase your relative share of liquidity in that range, potentially leading to higher rewards.
However, it's essential to note that only active liquidity positions will earn Gmeow rewards. This means rewards are only earned when the current trading price falls within the defined price range of the liquidity position.
If you need to modify your position's price range, you'll have to unstake, remove liquidity, and create a new position with the adjusted range. Keep in mind that frequent adjustments may not always be the most efficient strategy as it incurs impermanent loss and involves gas fees for multiple transactions.
What is the maximum number of positions I can stake in a single farm?
There isn't a cap on the number of positions you can stake in a single farm. However, keep in mind that you'll incur gas fees for manually harvesting from each position. It's essential to consider these gas costs when executing yield operations.
How frequently should I collect my rewards?
The frequency of harvesting your rewards is your decision, but it's important to note that there is a small fee associated with each harvest. You can view this fee in your wallet when confirming the harvest process by clicking "Harvest."
The fee for harvesting is displayed in the MetaMask wallet. Other wallets may present this information differently. It may be beneficial to allow your rewards to accumulate for some time to minimize the frequency of fee payments.
What if I want to adjust my position while staking in the farm?
While staked in the farm, you have the option to add or remove liquidity without unstaking it. To do so, find the liquidity position you wish to adjust, click on its title/id, and you'll be taken to the position detail page where you can utilize the "Add" and "Remove" buttons.
However, if you need to modify the price range settings of a liquidity position, you'll have to unstake it from the farm, remove all liquidity, and then create a new position by adding liquidity again.
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