Yield Farming

Yield farms are another novel concept that originated in DeFi and have since become integral to the ecosystem, especially for Automated Market Makers (AMMs) such as UltronSwap. Combined with liquidity pools, yield farms offer yet another way for users to stack yield.

Yield farms utilize UltronSwap Liquidity Provider (UxLP) tokens, which are given to liquidity providers (LPs) when providing liquidity to a pool. These UxLP tokens represent a LP’s portion (in percent) of a specific pool and can be “staked” in a yield farm. LPs that choose to stake their UxLP tokens in a farm earn additional $ULX rewards on top of the swap fees that are already accruing. Of course, UxLP tokens can also just be held after LPing as well to accumulate the swap fees only - yield farms are simply an additional way to make more money on the liquidity an LP has provided.