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When users add liquidity on DeSwap exchange, they are given LP tokens that represent their share of liquidity in that liquidity pool. These LP tokens can be held, swapped back for the original liquidity pairs or put to work in farms or staking contracts.
DeSwap Farm allows LP providers to stake their LP tokens to earn gDES, the governance token of the DeSwap ecosystem.
First, the DeSpace Farm admin needs to add a new LP address with an allocation point according to the value of that pool.
The pools with the highest allocation points would be DES and DES-related pools, followed by pools with stablecoins and network cryptocurrencies, and finally followed by other project tokens. The max allocation point is 2000 and the minimum is 100.
If you’re a project looking to incentivize liquidity through a DeSwap Farm, get in touch with our team today.
The rewards for each LP pool are calculated with the following formula:
(number of blocks * gDES rewards per block * allocation point assigned to pool) / total allocation points of all active pools
Once a pool is added, the holders of its LP tokens can deposit them into the farm for gDES allocation incentives.
Farmers across all added pools will share from the available block rewards for every block they were staked on. The allocation point given to the individual pools and volume of LP staked would determine how much a user earns (see the formula above).