The LP Farms require forming a Liquidity Provider token through Pancakeswap v2, then depositing it into the Farms to earn yield.
Yield farming is a process that allows investors to contribute into liquidity pools of projects. In this model, the investor is acting like a bank, loaning out their assets and collecting fairly high levels of interest as a reward for doing so. As a liquidity provider, an investor deposits their asset into a liquidity pool (which is a contract filled with funds). These platforms carry a fee to use, and those fees are often distributed amongst liquidity providers based on their share of the liquidity pool.
Yield farming typically requires the investor to purchase liquidity pair tokens, which are usually 2 assets combined in a 1:1 ratio. Many of these pairs are tied to BNB. If an investor chooses to provide $100 of asset A, they would need to also contribute $100 of BNB to create LP tokens. Those tokens then can be staked to earn more single asset or LP tokens.
Technically speaking, the farms operate by dripping a percentage of the BAS pool within the contract to addresses farming. We are able to modify the volume going into the LP Farms by adjusting the Tax from transactions into the pool, or by adding BAS manually from the Farms Multisig.
- 2.Deposit BAS + BNB
- 4.Deposit the LP token into the vault (hit Max, then deposit to vault)
- 5.Manually harvest BAS for rewards