🧑🌾Liquidity Farming
Official documentation of Robots.Farm. The exact details may vary as the platform developers continue to innovate and enhance experience.
Last updated
Official documentation of Robots.Farm. The exact details may vary as the platform developers continue to innovate and enhance experience.
Last updated
Welcome to the world of Robots.Farm, a platform that seamlessly combines the thrill of gaming with the financial innovations of decentralized finance (DeFi). Robots.Farm offers its players a unique opportunity to participate in liquidity farming, but with a twist – here, it's all about robots and their components. This guide aims to demystify the concept of liquidity farming within Robots.Farm and explain how you can start earning both locked and unlocked tokens by providing liquidity to the game's ecosystem. What is Liquidity Farming?
At its core, liquidity farming, also known as yield farming, is a way for players to earn rewards by providing liquidity to a decentralized exchange (DEX) integrated within the platform. In Robots.Farm, this involves depositing a pair of tokens into a liquidity pool to support trading activities, allowing players and other users to swap tokens efficiently.
Imagine a giant pot where players can deposit two types of tokens in equal value – for example, the platform's primary token ($RBF) and a stablecoin ($USDC). These tokens provide the necessary liquidity for others to trade between $RBF and $USDC within the platform. By contributing to this pool, you become a liquidity provider (LP) and receive LP tokens, representing your share of the pool.
Robots.Farm rewards LPs with $RBF tokens for their contribution to the liquidity pool. These rewards come in two forms: locked and unlocked tokens.
Unlocked Tokens are immediately available for use within the platform. You can use them for purchasing upgrades, special items, or even trading them on the market.
Locked Tokens: Over a 12-month period, these tokens are progressively unlocked. In the early stages, the majority of tokens will remain locked, promoting stability and sustained participation. As we approach the end of this period, a larger portion of tokens will have been unlocked, reflecting a gradual transition towards full liquidity and participant reward realization.
Participating in liquidity farming within Robots.Farm offers several benefits:
Earn Passive Income: By simply providing liquidity, you earn rewards that can increase your wealth within the platform's ecosystem.
Contribute to the Platform's Economy: Your liquidity helps stabilize token prices and ensures a smooth trading experience for all players.
Unlock Special Features: Some locked tokens might grant you access to special platform features or exclusive events once they are unlocked.
To start liquidity farming in Robots.Farm:
Select a Liquidity Pool: Choose which tokens you want to pair and contribute to the pool.
Deposit Tokens: Deposit an equal value of each token into the pool to receive LP tokens.
Stake LP Tokens: Stake your LP tokens in the farm to start earning rewards.
Harvest Your Rewards: Collect your earned RBF tokens, decide whether to reinvest, hold, or sell them.
You can withdraw your stake from the pool at any time. Withdrawal can be full or partial—just specify % of your stake you’d like to withdraw! You will receive your tokens in equal proportion relative to their $value.
To protect our users from flash loan bots and other malicious actors, withdrawal during first 12 hours will incur a penalty up to 10% which reduces over time. There are no withdrawal fees after 12 hours since adding liquidity.
While liquidity farming can be lucrative, it's essential to be aware of risks such as impermanent loss, especially in volatile markets. Educate yourself on these risks and consider your strategy carefully.
Disclaimer
Please note that the information provided on this page is subject to change and may have already been updated. This content is intended for educational purposes only and should not be taken as advice for action. To stay abreast of the latest updates and developments, we encourage you to join our Discord and engage with other players. Understanding the current meta through community interaction will greatly enhance your gaming experience. Here at Robots.Farm, we're committed to creating a dynamic, rewarding environment, and we're constantly working to improve your experience. We thank you for being a part of this journey.
