Yield Farming

Earn additional rewards on top of trading fees through HX Finance farming programs.

What is Yield Farming?

Yield farming provides extra incentives for liquidity providers:

• Base Rewards: Trading fees from swaps
• Farming Rewards: Additional token incentives
• Points Boost: Multiplied points for farming positions
• Double Dipping: Earn fees + rewards simultaneously

Current Farming Programs

Active Farms

Coming Soon

• Partner token rewards
• Dual reward programs
• Boosted pools for new launches

How to Start Farming

Step 1: Choose a Farm

1. Visit Farms page (opens in a new tab)
2. Compare APRs and rewards
3. Check requirements and multipliers

Step 2: Add Liquidity

1. Click "Add Liquidity" on chosen farm
2. Select your price range
3. Deposit tokens
4. Receive LP NFT

Step 3: Stake Your Position

1. Go to the Farming tab
2. Select your LP position
3. Click "Stake"
4. Confirm transaction

Step 4: Earn Rewards

• Rewards accumulate in real-time
• View earnings on dashboard
• Claim anytime (gas-efficient)

Maximizing Farm Yields

Strategy 1: Concentrated Positions

Narrow Range Benefits:
- Higher fee earnings
- Larger share of rewards
- Risk: Going out of range

Example: ±10% range on WHYPE/USDE
- 10x capital efficiency
- 10x more rewards per dollar

Strategy 2: Stable Pair Farming

Wide Range Benefits:
- Lower maintenance
- Consistent rewards
- Minimal impermanent loss

Example: Full range on USDE/USDC
- Set and forget
- Steady returns

Strategy 3: Active Management

Rebalancing Strategy:
1. Monitor price movements
2. Adjust ranges weekly
3. Compound rewards
4. Maximize in-range time

Best for: Experienced LPs
Returns: Highest potential

Reward Calculations

Base Formula

Your Rewards = (Your Liquidity / Total Liquidity) × Daily Rewards × Time

With Multipliers

Final Rewards = Base Rewards × Points Multiplier × Tier Multiplier
(Note: All multipliers are currently 1x)

Example Calculation

Investment: $10,000 in WHYPE/USDE
Pool TVL: $1,000,000
Your Share: 1%
Daily Rewards: 10,000 points
Base Earning: 100 points/day

With 1x multiplier: 100 points/day
With Diamond tier (1x): 100 points/day
Monthly total: 3,000 points

Risk Management

Understanding Risks

1. Impermanent Loss: Price divergence reduces value
2. Out of Range: Stop earning when price moves
3. Opportunity Cost: Locked capital vs other uses
4. Smart Contract Risk: Audited but never zero

Mitigation Strategies

• Start with stable pairs
• Use wider ranges initially
• Diversify across multiple farms
• Monitor positions regularly
• Take profits periodically

Advanced Farming

NFT Position Management

• Each position is an NFT
• Can stake multiple positions
• Transfer between wallets
• Sell positions (with rewards)

Compounding Strategies

1. Manual Compound

   • Claim rewards weekly
   • Re-stake into same pool
   • Exponential growth

2. Auto-Compound (Coming Soon)

   • Automatic re-investment
   • Gas-efficient
   • Set and forget

Tax Optimization

• Farming rewards are taxable
• Track cost basis
• Consider harvest timing
• Consult tax advisor

Farming Metrics

Key Performance Indicators

• APR: Annual percentage rate (fees + rewards)
• TVL: Total value locked in farm
• Daily Rewards: Tokens distributed per day
• Your Share: Percentage of pool owned

Monitoring Tools

• Dashboard: Real-time positions
• Analytics: Historical performance
• Calculator: Estimate returns
• Alerts: Price range notifications

Special Programs

Launch Farming

New token launches often include:

• Higher base point rewards
• Exclusive early access
• Higher reward allocations
• Limited time bonuses

Partner Farms

Collaborations with other protocols:

• Dual token rewards
• Cross-protocol benefits
• Exclusive NFT rewards
• Governance rights

Common Questions

Q: Can I lose money farming? A: Yes, through impermanent loss or if rewards don't offset losses.

Q: When should I claim rewards? A: Balance gas costs vs reward size. Weekly is common.

Q: Can I unstake anytime? A: Yes, no lock-up periods on current farms.

Q: Do rewards compound automatically? A: No, manual claiming and re-staking required currently.

Getting Started Checklist

• Choose farming pool based on risk tolerance
• Calculate potential returns using tools
• Add liquidity with appropriate range
• Stake LP position in farm
• Set calendar reminder to monitor
• Join Discord for farming strategies
• Track rewards for tax purposes

Next Steps

• View Active Farms (opens in a new tab)
• Farming FAQ
• Calculate Returns (opens in a new tab)