Farming

Short history

Remember "Defi summer" of 2020? Compound pioneered the concept of rewarding users with tokens for providing liquidity. But it was SushiSwap (now Sushi) that popularized the concept of liquidity mining or yield farming by offering its own governance token, SUSHI, as a reward for users who provided liquidity to the protocol. This move sparked a trend of other DeFi projects adopting similar liquidity mining mechanisms and incentivizing user participation through token rewards.

So what's Yield-Farming in a nutshell?

Yield farming involves users providing liquidity for an asset pair (such as HEX-USDC) in a DeFi protocol (such as PulseX) in exchange for rewards, which are often in the form of the protocol's native token (such as PulseX's Incentive Token).

These rewards are earned in addition to any interest or fees generated from users trading on that liquidity pair.

9inch has forked, optimized, and built on the best and most proven code in the DeFi space (Pancakeswap, PulseX, Uniswap, Sushi) to provide the most lucrative and long-term viable yield-farming possible.

Farming will allow you to basically "mine" BBC tokens with your LP token (a token you get by providing liquidity to a specific pair). Hence, apart from earning just fees from token swap transactions (like on Uniswap), you will mine more tokens with your LP token, like BBC or other partner/launchpad tokens

How do I yield-farm on 9inch?

Earning yield on 9inch is pretty easy once you get the hang of it!

Here's a quick step-by-step farming guide:

1. First, you need to have both tokens of the liquidity pool you want to farm, example: 9INCH-USDC farming pool requires you to have both 9INCH and USDC.

2. Once you have the tokens in your wallet, navigate to the "Liquidity" tab. Here, you will see the available pools, including the 9INCH-USDC pool.

3. Click on the 9INCH-USDC pool and select the "Add Liquidity" option. This will allow you to deposit 9INCH and USDC tokens into the pool.

4. Enter the amount of 9INCH and USDC tokens you want to deposit and click on "Approve." This will allow 9inch to access your tokens and add them to the pool.

5. Once your tokens are approved, click on "Supply" to deposit your tokens into the pool.

6. After you have deposited your tokens, you will receive 9INCH-USDC LP tokens in return. These LP tokens represent your share of the liquidity pool.

7. Next, navigate to the "Farms" tab and select the 9INCH-USDC pool. Here, you will see the available reward tokens you will get for farming, in this example you will earn BBC.

8. Click "Deposit" to start yield farming BBC tokens. Enter the amount of LP tokens you want to deposit and confirm the transaction.

9. Congratulations! You are now yield farming on 9inch. As long as you keep your LP tokens staked in the farm, you will continue to earn rewards. You can check your rewards by navigating to the "Farms" tab and selecting the (in this example case) 9INCH/USDC pool.

Or read more in-depth instructions in Beginner's guide to DeFi - How to Use Farms

What's the highest-yielding farm?

The liquidity farms with the highest APR are the ones where the native token (9INCH) and the reward token (BBC) are involved, such as BBC-ETH for example. The various farming pools change their APR dynamically depending on how much they are being farmed, so the actual highest APR pools change from time to time.

Usually the amount of yield you earn is correlated with the perceived risk of the tokens in a pair, and their volatility. So usually you'll find that "no risk" or low-risk pairs like ETH-USDC offer the least yield.

Maxxxed indicates the highest $BBC rewarding farms.