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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. Itโ€™s not as scary as it sounds, but it is worth learning about the concept before you get started.
For detailed information about impermanent loss, check out this article from Binance.

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
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Reward calculations
Calculating Farm Base Reward APR
Calculating LP Reward APR