# Overview

Farming allows users to earn POD while supporting WhaleSwap by staking LP Tokens.

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.Farm APR calculations include both:

**LP rewards APR**earned through providing liquidity**Farm base rewards APR**earned staking LP Tokens in the Farm

Why? Because when you stake your LP tokens in a farm to earn POD, 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 POD distributed to the farm.On top of that, farmers receive

**LP rewards**for providing liquidity. Here's an example of calculating**LP rewards**:Assume we have the WBNB/BUSD pair with 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 0.2% trading fee structure): $96,970,000*0.2/100 =**$193,940** - Next, use that
**fee share**to estimate the projected**yearly fees**earned by the pool (based on the current 24h volume): $193,940*365 =**$70,788,100**

- We can now use the yearly fees to calculate the
**LP rewards APR:**That's**yearly fees**divided by**liquidity:**($70,788,100/$387,420,000)*100 =**18.27% LP reward APR**

Last modified 8mo ago