Hello, Tinyman farmers and soon-to-be farmers! Today, we’re diving deep into our farming feature. Whether you’re new to yield farming or a seasoned DeFi veteran, this guide will walk you through everything you need to know about earning rewards on Tinyman.
What is Tinyman Farming?
Before we jump into the how-to, let’s quickly recap what farming is on Tinyman. Essentially, it’s a way for you to earn additional rewards (in TINY tokens) by providing liquidity to specific pools. It’s our way of incentivizing users to help maintain deep, stable liquidity in key trading pairs.
How Tinyman Farming Works
Our farming system is unique because it combines protocol-defined rewards with community-voted incentives. Here’s the breakdown:
- Protocol Portion (20%): This part of the daily rewards goes to fixed pools that we’ve identified as crucial for the ecosystem. Think of major pairs like ALGO/USDC.
- Community Portion (80%): The lion’s share of rewards🔥 is distributed based on community voting. This is where you get a say in which pools receive incentives.
Farming Rewards Distribution
Every month, we hold a community vote to determine which pools will receive farming rewards for the upcoming month. 🗳 Here’s how it works:
- Voting opens on the 20th day of each month for the next month’s rewards.
- The voting period lasts for 7 days.
- Users vote with their TINY Power, allocating it to their preferred pools.
- The top 10 pools by vote receive incentives, with rewards distributed proportionally to votes received.
How to Participate in Farming
Now, let’s get to the exciting part — how you can start farming on Tinyman!
Step 1: Provide Liquidity
- Navigate to the ‘Pool’ section on Tinyman.
- Select the asset pair you want to provide liquidity for.
- Enter the amounts you wish to deposit.
- Confirm the transaction and you’ll receive LP tokens.
Step 2: Stake Your LP Tokens
- Go to the ‘Farm’ section on Tinyman.
- Find the pool you’ve provided liquidity for.
- Click on ‘Stake’ and enter the amount of LP tokens you want to stake.
- Confirm the transaction.
Step 3: Start Earning
Once your LP tokens are staked, you’ll automatically start earning TINY rewards. The amount you earn depends on:
- The total amount of liquidity you’ve provided
- Your share of the total staked liquidity in that pool
- The amount of rewards allocated to that pool
Step 4: Claim Your Rewards
- In the ‘Farm’ section, find your staked position.
- Click on ‘Claim Rewards’.
- Confirm the transaction, and the TINY tokens will be sent to your wallet. ✅
Remember, you can claim your rewards at any time!
Farming Strategy Tips 🔎
- Diversify: Consider providing liquidity to multiple pools to spread your risk and potential rewards.
- Stay Informed: Keep an eye on the monthly voting to see which pools are likely to receive the most rewards.
- Long-term Thinking: Remember, longer commitments in the Governance Vault increase your Tiny Power, giving you more say in reward distribution voting.
- Monitor Impermanent Loss: While farming can be profitable, always be aware of the potential impermanent loss in volatile pairs.
The Farming Interface
Our farming interface is designed to be intuitive and informative. Here’s what you’ll see:
- Available Farms: A list of all pools currently eligible for farming rewards.
- Your Positions: Shows your currently staked positions and accumulated rewards.
- APR: The estimated annual percentage rate of return for each farm.
- Total Value Locked (TVL): The total value of assets staked in each farm.
- Your Stake: The amount of LP tokens you’ve staked in each farm.
- Earned Rewards: The amount of TINY tokens you’ve earned and can claim.
Frequently Asked Questions
Q: Can I unstake my LP tokens at any time? A: Yes, you can unstake your LP tokens whenever you want. However, you’ll stop earning rewards on the unstaked amount.
Q: How often are rewards distributed? A: Rewards accrue in real-time but are distributed when you claim them.
Q: What happens if I don’t claim my rewards? A: Your rewards will continue to accumulate until you claim them. There’s no time limit on when you need to claim.
Q: Can I vote for multiple pools in the monthly distribution vote? A: Absolutely! You can split your Tiny Power across as many pools as you like.
Wrapping Up
Farming on Tinyman is a great way to put your crypto assets to work and earn additional rewards. By participating, you’re not just earning for yourself — you’re contributing to the overall health and liquidity of the Tinyman ecosystem.
Remember, while farming can be profitable, it’s important to understand the risks involved, including impermanent loss and smart contract risks. Always do your own research and never invest more than you can afford to lose.
We’re excited to see how you’ll use this feature to maximize your returns on Tinyman. Happy farming, everyone!
Got more questions? Join us on Discord or Telegram — we’re always here to help!
