At BabyDoge Swap you can join our Farms that allow users to earn BabyDoge or other tokens while supporting BabyDogeSwap by staking LP Tokens.
Check out our to get started with farming.
Learn how to find Farm/Pool smart contracts
Yield farming can give better rewards than 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 from Binance Academy to learn more.
Yield Farm APR calculations include both:
LP rewards APR earned through providing liquidity and;
Farm base rewards APR earned staking LP Tokens in the Farm.
Why? Because when you stake your LP tokens in a farm to earn BabyDoge, you're still providing liquidity to the liquidity pool, so you earn LP rewards as well!
So how do we calculate those figures?
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 BabyDoge distributed to the farm.
On top of that, farmers receive ** LP rewards** for providing liquidity.
For Example: In the WBNB/BUSD pair, we see these values:
Liquidity: $387.42M Volume 24H: $96.97M Volume 7D: 709.73M
Calculate yearly fees
Use the 24H volume to calculate the **fee share **of liquidity providers in the pool (based on the 0.17% trading fee structure): $96,970,000*0.17/100 = $164,849
Next, use that **fee share **to estimate the projected yearly fees earned by the pool (based on the current 24h volume): $164,849*365 = $60,169,885
We can now use the yearly fees to calculate the **LP rewards APR: **That's yearly fees divided by liquidity: ($60,169,885/$387,420,000)*100 = 15.53% LP reward APR
