# Yield Farming

Yield Farms allow users to earn VERTO while supporting VertoTrade by staking LP Tokens.

Check out our How to Use Farms guide to get started with farming.

# Reward calculations

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 VERTO, you're still providing liquidity to the liquidity pool, so you earn LP rewards as well!

So how do we calculate those figures?

# Calculating Farm Base Reward APR

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 VERTO distributed to the farm.

# Calculating LP Reward APR

On top of that, farmers receive LP rewards for providing liquidity. Here's an example of calculating LP rewards:

In a sample VERTO/REBUS pair, we have these values:

Liquidity: $387.42K
Volume 24H: $96.97K
Volume 7D: 709.73K

  • 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*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)*100 = 15.53% LP reward APR