MeowSwap Feature Release: Yield Farming
Today we are excited to introduce yield farming to our platform, in addition, we are opening two new pools for trading to accompany this event: ADA/SUNDAE and ADA/DANA.
Our DeFi infrastructure is evolving, and the Meow token is now becoming fuel for the MeowSwap ecosystem. In this article, we explain everything you need to know about yield farming and how to participate.
Do not miss your opportunity to become one of the first liquidity providers — the earlier you start farming the more rewards you will reap!
What is Yield Farming?
Yield farming is one of the most interesting investment strategies in DeFi, this method involves earning interest on your cryptocurrency, similarly to how you would earn interest on any money in your savings account. Also in the same way as depositing money in a bank, yield farming involves locking up your tokens for a period of time in exchange for interest or other rewards.
An essential term to understand regarding yield farming is annual percentage yields (APY) - this term is used to describe the annual return on investment (yield). Some of the most successful yield farmers are able to reach triple-digit APY percentages. However, please note that this type of staking is considered high risk, so before going ahead with this practice please keep in mind the risks involved.
MeowSwap Rewards Structure for Yield Farming
- MeowSwap will run a huge yield farming campaign, this campaign will run for a duration of 12 months. So prepare to celebrate a year of yield farming with us. During this period MeowSwap will distribute 10 million MEOW tokens.
- Rewards in the form of MEOW are allocated to the liquidity providers each hour. They will be transferred to the staking pool every two months; at which point they may be claimed by the user. However, rewards will remain locked until the total TVL (total value locked) in all pools reaches USD 50 million.
- If the liquidity provider decides to withdraw their liquidity before the end of the two-month reward distribution period, their MEOW rewards for the campaign will stay in the pool and will be distributed amongst the remaining liquidity providers. All the rewarded MEOW tokens will remain in the Rewards Wallet for the two months and then transferred to the staking pool where they can be claimed by the user. Detailed information on staking will be published from official MeowSwap sources shortly, so stay tuned!
Yield Farming on MeowSwap all you need to know!
- The user transfers their funds to the yield farming pool. Please note there are no restrictions on funds participating in yield farming, meaning that the user can farm as much or as little as they desire.
- The MEOW tokens transferred for yield farming are kept in a unique pool.
- Users who yield farm receive rewards according to the proportion of funds in this pool.
- Rewards for the funds in the yield farming pool are calculated each hour.
The MeowSwap Yield Farming Campaign
The yield-farming campaign will go live from 00:00 UTC on the 22nd of March - at the start of this campaign you will be able to farm using the following pools:
- More pools could be added during this initial campaign at the discretion of the team, so please stay tuned - and subscribe to our announcements channel for the latest information!
We are thrilled to be able to deliver these new features to MeowSwap users, hurry to participate! Please keep in mind that whilst this type of investment can be very profitable it can also incur the risk of impermanent loss.
Happy trading and please stay tuned for further exciting news from the MeowSwap team.