Yield Farming is a smart contract deployed on the block chain that distributes rewards based on value inputs received from the user. In the MetaVerse-M protocol, it is represented as a reward contract that distributes yield farming rewards.
“Adding value” via yields
When you buy tokens and hold them, whether to keep, stake or provide liquidity, we say that you “add value” to the token community, or more specifically to the existing token holders or anyone who benefits from token value/price increase (typically projects or large investors in projects).
Everyone who joins the farm receives rewards based on their share of the total “position” in the yield farm.
How it works
In many ways, staking works like a savings account, where you deposit money with a bank, which then pools depositor money and lends it forward while you earn interest on the funds that you deposited. Instead of being converted into a mortgage or a business loan, the cryptocurrency in a yield farm is invested in smart contract applications.
With yield farming, users stake their currency—the cryptocurrency equivalent of making a deposit—with others investing in the same farm. Staking may require you to leave your funds invested for a specific period. You then provide liquidity to mining pools, and called a liquidity provider.
Yield farming begins with the creation of a pool of cryptocurrency assets. These are the steps that take place to facilitate yield farming.
The first step in yield farming is creating a liquidity pool. This relies on a smart contract that facilitates all investing and borrowing for our farm.
Users can connect their digital wallets to deposit currency in the liquidity pool. This is sometimes referred to as “staking.” Smart contract enables borrowing: The smart contract can facilitate several processes, including adding liquidity for a cryptocurrency exchange market, or lending to others. Interest, bonuses, and rewards may vary. You are paid at regular intervals or on a specific future date.
yield Farm Types
Currently, there are two yield Farm types supported by the MetaVerse-M protocol:
Single yield Token Farm
The Single yield Token Farm is suitable for crypto or NFT projects/protocols to sponsor yields of their own token.
- It consists of a single Token and single reward token
- A reward token is a token which is deposited in a yield farm as a reward for successful yields. It can be any crypto/fungible token on a block chain supported by the MetaVerse-M protocol.
- A reward token can also be the same when the same crypto/fungible token is chosen for both when creating the farm
Multi yield Token Farm
Multi yield Token Farm is the most suitable for ecosystems hosting token exchanges that are willing to incentivize traffic/volume towards their protocols via purchase of various tokens (e.g., DEX, Marketplaces, block chain networks).
- Multi yield Token Farm consists of multiple Tokens and a single reward token
- yields are sponsored for a number of Tokens chosen by our governance system.
- A Reward Token is a token that is deposited in a yield farm as a reward for the successful yields
- A Reward Token can be any crypto/fungible token on a block chain supported by the MetaVerse-M Protocol
MetaVerse-M yield Farm
We provide over 19 farming pairs and liquidity pools to stake and earn M. We cater for all risk appetites via stable coin stakes and conventional crypto assets.