To understand how this works, let’s look at the steps to farming the SPIRIT token on the SpiritSwap protocol by providing liquidity in MIDAS/WFTM pool:
Farming in SpiritSwap
- Deposit MIDAS and WFTM to the liquidity pool
- Receive LP tokens
- Deposit received LP tokens to the MIDAS/WFTM farming pool
- Receive the SPIRIT token
In this scenario, your LP tokens would earn fees in MIDAS/WFTM liquidity pool. At the same time, the LP token from the liquidity pool earns you SPIRIT tokens as a reward for farming. By using LP tokens, your liquidity works double-time — earning fees and farming yields.
You can check the detailed guide to Farming on Spiritswap on our wiki page: https://wiki.midas.investments
Boosted Farming on SpiritSwap
In addition to Standard Farming, SpiritSwap has also Boosted Farming. But before joining Boosted Farming, we first need to learn about the two native SpiritSwap protocol tokens: SPIRIT and inSPIRIT. Let’s look at the infographic below.
So, we see that inSPIRIT is the governance token of SpiritSwap that is based on a vote locking model. The main benefits for inSPIRIT users include: receiving participation rewards, boosted SPIRIT farming rewards, and voting power.
Boosted Farming Formula
DerivedBalance = UserBalanceInFarm * 0.4
Adjusted Balance = TotalDepositedInFarm * UserInspiritBalance / InspiritTotalSupply
BoostFactor = min(DerivedBalance + AdjustedBalance, UserBalanceInFarm) / UserInspiritBalance
Examples: There are 1,000 inSPIRIT total and 10,000 MIDAS/WFTM LP total in the farm.
- User A has 0 inSPIRIT and 1,000 MIDAS/WFTM LP in the farm –> BF = 0.4 –> 0.4/0.4 = 1x boost
- User B has 10 inSPIRIT and 1,000 MIDAS/WFTM LP in the farm –> BF = 0.46 –> 0.46/0.4 = 1.15x boost
- User C has 100 inSPIRIT and 1,000 MIDAS/WFTM LP in the farm –> BF = 1 –> 1/0.4 = 2.5x boost
- User D has 400 inSPIRIT and 1,000 MIDAS/WFTM LP in the farm –> BF = 1 –> 1/0.4 = 2.5x boost
Start Farming with Midas on SpiritSwap: https://app.spiritswap.finance