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Yield Farm

Yield farming allows users to deposit tokens in specific pools, aka farms, to earn passive income in the form of DYNO tokens.

Introduction​

Unlike typical liquidity providing which only allows users to earn based on transaction fees, which depend on trading volume, yield farm rewards are distributed regardless of transaction volume.

The yield farm distributes rewards based on the amount of liquidity staked, duration of staking, and additional multipliers for staking BOLT tokens. The longer and larger your stake, the greater your rewards!

In addition, participants earn fees just like they would by participating in standard liquidity pools.

ElectroSwap Yield Farms

How It Works​

  1. Deposit Tokens: Users deposit liquidity (staked tokens) into designated farms, thereby becomine a farmer.
  2. Earn Rewards: Rewards are calculated based on amount of liquidity staked, farm allocations, staking duration, and any BOLT staking multipliers.
  3. Withdraw Tokens: Users can withdraw their liquidity and/or their accrued rewards and fees at any time.

Key Functions You Can Use​

Deposit​

Click "Deposit" on the earn page to start earning rewards by depositing tokens into the farm. You may optionally choose to stake BOLT to increase your DYNO rewards.

Deposit

Additional deposits

Making subsequent deposits after the first will reduce your duration multiplier for the new deposit amount proportionate to the duration already served and amount already deposited.

This is in place to prevent gaming/manipulation of duration multiplier mechanics.

Collect Fees and Rewards​

By clicking on "Withdraw" on the earn page and leaving the percentage slider at 0%, you can withdraw just your DYNO rewards and fees earned.

This leaves your deposited liquidity (and duration multiplier) intact.

Collect Fees and Rewards

Withdrawing​

By clicking on "Withdraw" on the earn page and choosing a percentage of liquidity to remove you can retrieve your tokens along with any DYNO rewards and fees you’ve earned.

Withdraw

BOLT Staking

Any BOLT staked can only be unstaked by withdrawing all of your liquidity from the farm.

Reward Calculations​

There are factors that affect all farms and farmers, and there are factors that only individual farmers control.

Global factors​

These factors are controlled/defined by ElectroSwap

  • Inflation rate: Rewards are distributed in DYNO tokens at a constant rate every block. This rate determines DYNO's overall rate of inflation.
  • Farm allocations: Each farm also receives an allocation that determines the percentage of the total DYNO token distribution from each block. Farm allocations are subject to change depending on liquidity requirements within the DEX.

Farmer's reward factors​

  • Share of Farm Liquidity: The percentage of the farmer's liquidity in the farm of the total liquidity in the farm.
  • Duration Multiplier: The longer a farmer's liquidity remains staked, the higher the reward multiplier (capped at 2.5x @ 1 year).
  • BOLT Multiplier: Staking BOLT tokens will multiply farmer rewards by up to 1.15x at time of launch.

Detailed Calculation Details

For each farm, rewards are accumulated per share based on the number of blocks passed since the last calculation. Farmer rewards are calculated as follows:

  1. Base Rewards: Proportional to the farmer's share of the farm, the farm's allocation of the total DYNO distributed per block, and the number of blocks the farmer has served since deposit.
  2. Duration Multiplier: The contract applies a bonus multiplier based on how long farmers have kept their tokens staked. This multiplier is based on a linear yield-curve which increases over time, up to a cap of 2.5x which is obtained after one year.
  3. BOLT Multiplier: Holding BOLT tokens boosts rewards. The exact multiplier varies depending on the amount of BOLT staked.

APY Calculations​

It's important to note that APY calculations are subject to fluctuations. This occurs despite a constant rate of DYNO distributed for each block because the APY calculations use the farm's Total Value Locked (TVL) which changes as farmers make deposits and withdrawals.

Individual farmer's APY also take their duration and BOLT multipliers into consideration during the calculation.

Security and Transparency​

The contract includes protections for secure interactions:

  • Owner Controls: Only ElectroSwap can adjust critical settings, like allocation points and which pools to incentivize.
  • Fully Auditted: The yield farm contract has been throughly auditted by SourceHat, a leading blockchain security firm. See the audit report

Summary​

This yield farm offers an easy way to earn passive income with DYNO rewards by providing liquidity and staking BOLT tokens. The more liquidity you contribute and the longer you stake, the higher your potential rewards. Holding BOLT amplifies rewards further, maximizing your returns!

Start staking today to earn DYNO tokens and boost your rewards with BOLT!