Yield Farming on SpiritSwap: Complete Guide

SpiritSwap is a decentralized AMM exchange on the Fantom Opera Chain. In an AMM, liquidity providers simply deposit a pair of tokens and an algorithm automatically makes markets for the token pair. In return, they receive SPIRIT-LP tokens. SPIRIT-LP tokens represent a proportional share of the given LP and liquidity providers may claim their underlying tokens anytime.
Liquidity providers receive a 0.25% fee for every swap that is made in their pair as payment for work. The 0.25% fee is directly added back to the LP, increasing the value of SPIRIT-LP tokens. Liquidity providers can also participate in yield farming with supported LPs.

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. 

To get inSPIRIT, users must lock their $SPIRIT for any timeframe between 1 month to 4 years. Locking $SPIRIT for a longer timeframe yields a larger amount of inSPIRIT. For example, locking 10 $SPIRIT for 1 year yields 2.5 inSPIRIT. Whereas, locking 10 $SPIRIT for 4 years yields 10 inSPIRIT.
Farmers that hold inSPIRIT can receive a max boost of up to 2.5x in farming rewards. For example, a farmer, with no inSPIRIT, could farm MIDAS-WFTM for 20% APR. Whereas a farmer with sufficient inSPIRIT to achieve max boost could farm MIDAS-WFTM for 50% APR.

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

If you have any questions, please join the Midas community in Telegram or Discord. Our admins are always glad to help!

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