QuipuSwap offers the community long-awaited farming opportunities. We have tried to gather all the information necessary for successful farming in this article.
Disclaimer: You should keep in mind that Yield farming is vulnerable to the usual DeFi risks, such as asset volatility, impermanent loss, etc. Income in DeFi is not guaranteed. Read the participation conditions for each farm carefully.
What Is Farming?
Yield farming is a DeFi strategy that allows projects to attract liquidity and reward liquidity providers with project tokens or distributed income from transactions. You can learn more about this concept in this article.
What Features Do QuipuSwap Farms Offer?
QuipuSwap farms will only launch with a few farm types intended to incentivize long-term farmers, including QUIPU and QUIPU/TEZ pair staking. We will start to add new pools with hand-picked pairs and our partners’ tokens after a short period. Eventually, following the release of the cross-chain bridge with Allbridge, multi-network cross-farming will become available.
Another major feature to be introduced in the initial farm release is Bakery Reward burning. All baking rewards accumulated in Tez/Token farming pools will be swapped to QUIPU and burned.
QUIPU Token Information:
Before participating in our farming activities, you should know more about our governance token:
QUIPU token is used both in QuipuSwap AMM governance and as a means of payment for future QuipuSwap services.
- You can find an article about tokenomics here.
- The initial distribution was conducted via airdrops. You can find information about the first and second airdrops here and here.
- Token Contract Address: KT193D4vozYnhGJQVtw7CoxxqphqUEEwK6Vb
- The total token supply is 10 000 000 after 4 years.
- You can buy QUIPU here.
Fees and Locks
Different fees may apply depending on the specific farm. Detailed information is given below:
- Interface fee (aka referral fee): QuipuSwap charges 0.5% on all earned tokens at the time the tokens are claimed by the user. Other projects may use our contracts and set up their own interface fees.
- A withdrawal fee may be applied in some farming pools at withdrawal as a percentage of the deposit. Our single-asset common QUIPU and QUIPU/TEZ farms will have no withdrawal fee.
- A token lock is a condition where you agree to lock your farm tokens for a specific duration. From the start, we have two lock types: a two-week token lock with a withdrawal fee and a month token lock without a withdrawal fee. If you make the withdrawal earlier, the rewards are burnt.
Our initial launch will include three types of farms. Common farms are more flexible and easy to use; however, they have less lucrative APRs than other farm types.
Please note: Each QuipuSwap farm has a flexible APR that may change as the pool size increases.
When choosing a farm, you will need to decide what is more important to you: flexibility or better token generation from your stake.
- Common farms
Any user may add or withdraw tokens at any time without withdrawal fees or locking periods.
- Farms with two week token locks and fees
You agree that your tokens will be locked for two weeks by participating in this farm. If you decide to withdraw your deposit earlier, you will be charged 10% of your deposit amount. Your rewards will also be burned. In the case of token withdrawal after two weeks, no fees will be applied.
All collected fees will be added to the farms in order to farm more QUIPU, which we plan to burn in the future.
- Farms with token lockdown only
You agree that your tokens will be locked for a month. It’s highly not recommended to withdraw tokens earlier. If you withdraw tokens, all your rewards will be burnt.
All farm restrictions should reduce pressure on the token price and optimize its distribution.
How Does It work?
Farming, by design, is a solution that makes DeFi easy and efficient. It is not much different from staking assets in a traditional liquidity pool with some additional benefits (extra rewards).
To start farming, you will need to follow these simple steps:
- Connect your wallet to QuipuSwap.
- Open the “Farming” tab.
- Pick the farm you want to participate in and click “Select”.
- To stake a single asset, jump directly to step 5. Staking an LP pair will require an additional step. You will first have to gain LP tokens by adding liquidity to the corresponding QuipuSwap liquidity pool.
- Enter the number of tokens you want to dedicate to a farm and click “Stake”.
- Check and collect your pending rewards as the farming period continues.
The user who deposits LP tokens with TEZ must vote for their preferred baker in the farming pool. The votes for each baker are accumulated in the ledger. Contract votes for the best candidate on the QuipuSwap immediately once it is updated on the farm contract. As we mentioned before, all baking rewards will be used to buy back and burn QUIPU tokens.
Other Things to Consider
- Pay attention to the farming period for each farm.
- Farming rewards are distributed daily and can be withdrawn at any time.
- Bear in mind the impermanent loss and other risks.