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Farming in Bot Planet ecosystem.Farming in Bot Planet ecosystem.

Feb 27, 2022 2 min reads

Another exciting feature that we have is Farming. In the following post you will find out all about it.

For simplifying exchange on the song to come BOTSwap, decentralized exchange would rely on the help of the foundations. BOTSwap will lean on the farming structure, in order to guarantee simple and quick transactions online. Traders put in their tokens for the period of time that they want to. Guaranteeing liquidity of the exchange, earning daily rewards. When a farmer offers liquidity on the exchange platform, he gets commission for the transaction, which is taken from the trader, who gets access to liquidity.

Farmers can present their assets for a long and short term. However, rewards that the farmers get, rely on how much did he loan to someone.

Tokens that are gotten from farming, way me used for getting rewards from the platform for staking.

Farming is the process of making a profit from tokens placed in a liquidity pool to support the trading process for a particular pair of assets. DEXs act as leverage by placing orders to buy or sell tokens, and liquidity pools are a kind of exchange’s smart contracts. Thus, the farmer, placing assets in the pool, receives a percentage of the transaction fees charged to traders who have access to liquidity.

The percentage is calculated depending on the share of the investment. For example, when one trader contributes $20,000 to the USD / BOT pool, and the second $10,000, the total pool is $30,000. The share of the former is about 66%, the latter is about 33%. Rewards are calculated accordingly. Thus, it becomes possible to sell and buy assets within the pool, which is realized due to their liquidity. The amount of profit in this case directly depends on the demand for the token.

BOT: $0.00599
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