Feb 28, 2022
Yield Farming $AART token on DEXs
How to yield farm $AART tokens on DEXs? Orca and Raydium explained
A quick reminder to our beloved community and our supporters that the yield farming programs on both Orca and Raydium are ongoing. Be hasty, stake your tokens and collect your rewards! In order to be eligible for participation in the yield farming program, you must be in possession of a certain amount of the $AART. The amount which you are willing to stake is completely arbitrary, so you can start small and work your way up later down the line.
So for those unfamiliar with the concept of yield farming, it’s essentially a reward system used to incentivize the token holder to hold on to the amount of asset the person has and earn a passive income over time.
How Does It Work?
First, we need to explain the concept of a liquidity pool.
A liquidity pool is a vault in which the funds are collected and locked via a smart contract. After the funds have entered the pool they are to be used for trading between assets on decentralized exchanges in a permissionless manner.
These pools are an integral part of the yield farming concept and the main precursor for its development because they facilitate liquidity on decentralized platforms.
What is Yield Farming?
Yield farming is a reward mechanism that incentivizes the token holder to stake their token into a lending protocol. The concept of staking can best be described as an act of locking up the deposited cryptocurrency. This is similar to the way one would deposit their money in a bank and earn interest. So in the same manner, the stakeholders earn rewards in the form of a yield based on the amount of the tokens deposited into the lending protocol.
Raydium Yield Farming
Raydium is an automated market maker and liquidity provider built on the Solana blockchain, made for the Serum DEX. The main goal behind the project is to provide blazing transaction speeds, a system for liquidity sharing, and introduce more features when it comes to yield farming.
For more information on how to participate in the yield farming program on Raydium watch the video below:
Orca Yield Farming
The first user-friendly exchange on the Solana blockchain and a place where you can exchange tokens with minimal transaction fees and low latency. Additionally, you may provide liquidity to a trading pool and get your share of the trading fees.
For more information on how to participate in the yield farming program on Orca watch the video below:
