Wigo Ecosystem
  • โ™พ๏ธWigo Ecosystem
    • ๐ŸŒOverview
    • ๐Ÿ“„Whitepaper V2
    • ๐ŸŒช๏ธMission & Vision
    • ๐ŸงฉThe Ecosystem
    • ๐Ÿช™WIGO Token
      • โ›๏ธTokenomics
      • ๐ŸŽRewards Distribution
  • ๐ŸชGALAXY
    • ๐ŸŒŒOverview
    • ๐ŸŽฎGalaxy Mechanics
    • ๐Ÿ•น๏ธQuest Types and Structures
    • ๐Ÿ†Rewards and Incentives
    • ๐ŸšฉGalaxy ID
    • ๐ŸŽจUser Experience and Interface
  • WigoSwap - The DeFi
    • ๐ŸฆOverview
      • ๐Ÿ”Secure & Sustainable
    • ๐Ÿ”ฅGalaxy Burn Module (GBM)
    • ๐ŸŒ‰WigoBridge: Go Beyond
    • ๐ŸŽฒWigoQuest: Play and Earn
    • โšกDeFi Products
      • โ†”๏ธSwap
        • How to Swap Fantom Tokens
      • ๐Ÿ’ฐLiquidity Pools
        • How to Add/Remove Liquidity
      • ๐Ÿ‘จโ€๐ŸŒพYield Farming
        • How to Use WigoFarm
        • How to Use WigoFarm with FTMScan
      • ๐ŸฆStaking WIGO
        • How to Stake in WigoBank
        • Automatic vs. Standard
        • WigoBank FAQ & Troubleshooting
  • WIGOPLAY
    • ๐ŸŽฎOverview
    • ๐Ÿง™Predict Game
      • How to use Predict
      • Predict FAQ
    • ๐ŸŽฒThe Raffle ๐Ÿ› 
  • Bazaar
    • ๐Ÿ–ผ๏ธOverview
    • ๐Ÿง™โ€โ™‚๏ธWiggies and Rare Wiggies
  • Developments
    • ๐Ÿ”—WiLink ๐Ÿ› 
    • ๐Ÿ‘ทDeTasker ๐Ÿ› 
    • ๐Ÿ’ฐWigoRun ๐Ÿ› 
    • ๐Ÿ‘ปWiHee ๐Ÿ› 
  • Extras
    • ๐ŸšฆEducation Hub
      • Create a Fantom Wallet
      • How to stake FTM
      • Get FRC20 Tokens
      • Connect Your Wallet to WigoSwap
      • Troubleshoot
      • General FAQ
      • Fix Pending Transactions
      • Risks
    • ๐Ÿ’ฌCommunity
    • โฌBrand & Logos
    • ๐Ÿ“”WigoSwap Contracts
    • ๐Ÿ”—Token Addresses
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  • Calculating the Rewards:
  • Calculating LP Rewards APR:
  • Calculating the APR of the Farm-related Rewards:
  1. WigoSwap - The DeFi
  2. DeFi Products

Yield Farming

PreviousHow to Add/Remove LiquidityNextHow to Use WigoFarm

Last updated 1 year ago

As users add liquidity to the platform, they earn LP Tokens. Staking the LP Tokens will lead to harvesting WIGO as the reward.

In terms of giving rewards, WigoFarm is better than Wigo Bank. However, there exists the risk of Impermanent Loss. While the term seems a little threatening initially, itโ€™s not the case if you learn about the concept before attempting to use the farms.

Calculating the Rewards:

The Annual Percentage Rate (APR) calculations related to the farms are twofold; Firstly, by providing liquidity, users benefit from the LP Rewards APR. Secondly, through staking their LP Tokens into WigoFarm, they profit from the Farm-related rewards APR.

Farm Total APR = LP Rewards APR + Farm Related Rewards APR

Calculating LP Rewards APR:

As mentioned before, users who use the farms or the so-called farmers benefit from the LP Rewards by providing liquidity. An example is provided to calculate LP Rewards clear:

For example, imagine In the FTM/DAI pair, we have these values:

Liquidity: $387.42M Volume 24H: $96.97M Volume 7D: 709.73M

Use the 24H volume to calculate the fee share of liquidity providers in the pool (based on the 0.18% trading fee structure): $96,970,000*0.18/100 = $174,546

Next, use that fee share to estimate the projected yearly fees earned by the pool (based on the current 24h volume): $174,546*365 = $63,709,290

We can now use the yearly fees to calculate the LP Rewards APR. That's yearly fees divided by Liquidity: ($63,709,290/$387,420,000)*100 = 16.44% LP Reward APR

Calculating the APR of the Farm-related Rewards:

Calculating the APR related to the farm rewards is based on various factors. These include the farm multiplier and the entire amount of liquidity in the farm. This is the amount of WIGO distributed to the farm.

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