🚜 Yield Farming
Yield Farms allow users to earn ANPAN while supporting AnpanSwap by staking LP Tokens.
Check out our How to Use Farms guide to get started with farming.
Warning: Yield farming can give better rewards than Honey 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.
Check out this great article about Impermanent Loss from Binance Academy to learn more.
Yield Farm APR calculation includes both the rewards earned through providing liquidity and rewards earned staking LP Tokens in the Farm.
Below is a basic explanation of how APR is calculated.
In the image above of the ANPAN/BNB pair, we see these values:
Volume 24H: $0.24
Volume 7D: $0.32
To calculate the APR, first we take the 24hour volume, $0.24, and calculate the fee-share of LP-holders, 0.17% [$0.24*0.17/100 = $0.000408].
Next, we estimate the yearly fees based on the 24h volume [$0.000408*365 = $0.14892].
Now we can calculate the fee APR with yearly fees divided by liquidity [($0.14892/$3.54)*100 = 4.21%].
With the fee APR, we can add the fee APR (4.21%) and the Farm staking APR (40.08%) to get the new total APR [4.21%+40.08% = 44.29%].