pages/farming.mdx

Yield Farming

Yield farming on WicSwap allows you to earn WICS tokens by staking your LP tokens in our reward pools. This creates additional earning opportunities beyond the trading fees you already collect as a liquidity provider.

What is Yield Farming?

Yield farming, also known as liquidity mining, is a process where you stake your LP tokens to earn additional rewards in WICS tokens. It's designed to incentivize liquidity provision and bootstrap the WicSwap ecosystem.

How It Works

1. Provide Liquidity: Add tokens to a liquidity pool
2. Receive LP Tokens: Get LP tokens representing your pool share
3. Stake LP Tokens: Deposit LP tokens into farming pools
4. Earn WICS: Receive WICS token rewards over time
5. Compound Rewards: Reinvest WICS or use for governance

Active Farms

Core Farms

Community Farms

APR is estimated based on current WICS price and farming rewards

Getting Started with Farming

Prerequisites

Before you can start farming, you need:

• LP tokens from providing liquidity to a supported pool
• Small amount of WIC for transaction fees
• Connected wallet on WicChain network

Step-by-Step Guide

1. Add Liquidity First

If you don't have LP tokens yet:

1. Go to the Liquidity section
2. Choose a farming-eligible pool
3. Add liquidity to receive LP tokens
4. Ensure you keep some tokens unstaked for trading

2. Navigate to Farms

1. Visit the Farms section on WicSwap
2. Browse available farming opportunities
3. Check APR, TVL, and multiplier for each farm
4. Select the farm matching your LP tokens

3. Stake Your LP Tokens

1. Select Farm: Click on your desired farming pool
2. Enter Amount: Input LP tokens to stake (or use "Max")
3. Approve Contract: Allow farming contract to access your LP tokens
4. Confirm Staking: Execute the staking transaction
5. Start Earning: WICS rewards begin accumulating immediately

4. Monitor and Harvest

• Pending Rewards: Check accumulated WICS tokens
• Harvest: Claim rewards to your wallet
• Compound: Reinvest WICS back into farming or liquidity
• Performance: Track your farming ROI over time

Farming Strategies

Conservative Strategy

Target: Stable returns with low risk

• Focus on stablecoin pairs (USDT-USDC)
• Lower APR but minimal impermanent loss
• Suitable for large capital allocation

Balanced Strategy

Target: Good returns with moderate risk

• Mix of stablecoin and WIC pairs
• Balance between APR and stability
• Diversify across multiple farms

Aggressive Strategy

Target: Maximum returns with higher risk

• High-multiplier WICS pairs
• Accept higher impermanent loss risk
• Active management and rebalancing

Advanced Strategies

Auto-Compounding

• Automatically harvest and reinvest rewards
• Maximize compound interest effect
• Available through third-party protocols

Yield Optimization

• Monitor APR changes across farms
• Migrate between pools for optimal returns
• Consider gas costs vs. potential gains

Leverage Farming

• Borrow additional tokens to increase position size
• Use borrowed funds to provide more liquidity
• Higher risk but amplified rewards

WICS Reward Distribution

Emission Schedule

Total WICS per block: 40 WICS
Distribution:
- 85% to Farms (34 WICS per block)
- 10% to Development (4 WICS per block)
- 5% to Marketing (2 WICS per block)

Block Times

• WicChain block time: ~2 seconds
• Daily blocks: ~43,200 blocks
• Daily WICS emissions: ~1,728,000 WICS

Allocation Points

Each farm receives a portion of WICS emissions based on allocation points:

Farm Allocation = (Farm Points / Total Points) × WICS per Block

Example: WICS-WIC LP with 40x multiplier receives:

40 points / 200 total points = 20% of farm emissions
20% × 34 WICS = 6.8 WICS per block

Boost Multipliers

WICS Staking Boost

Stake WICS tokens to boost your farming rewards:

How Boost Works

1. Stake WICS: Lock WICS tokens in the staking contract
2. Farm LP Tokens: Provide liquidity and farm as normal
3. Automatic Boost: Your farming rewards are automatically multiplied
4. Flexible Unstaking: Withdraw WICS anytime (may have cooldown)

Farming Risks and Considerations

Impermanent Loss

• LP tokens subject to impermanent loss
• Higher in volatile token pairs
• Often offset by farming rewards

Smart Contract Risk

• Farming contracts have been audited
• Bug bounty programs active
• Consider starting with smaller amounts

Market Risk

• WICS token price volatility affects APR
• Reward token can appreciate or depreciate
• Diversification recommended

Lock-up Periods

• Most farms have no lock-up
• Some special farms may have vesting
• Always check terms before staking

Farming Tools and Analytics

Built-in Calculator

• Estimate daily/monthly WICS earnings
• Factor in compound interest
• Account for boost multipliers

Portfolio Tracker

• Monitor all farming positions
• Track historical performance
• ROI and APY calculations

Yield Comparison

• Compare farms across different metrics
• Risk-adjusted returns
• Historical APR trends

Special Farming Events

Launch Farms

• New token pairs with extra rewards
• Limited-time high multipliers
• Early adopter incentives

Seasonal Boosts

• Holiday and milestone celebrations
• Community event rewards
• Governance proposal bonuses

Partner Integrations

• Cross-protocol farming opportunities
• External project collaborations
• Exclusive reward programs

Farming Best Practices

Risk Management

1. Start Small: Test with small amounts first
2. Diversify: Don't put all funds in one farm
3. Monitor IL: Track impermanent loss regularly
4. Set Targets: Define profit-taking levels

Optimization Tips

1. Harvest Frequency: Balance gas costs vs compound gains
2. Reinvestment Strategy: Compound vs taking profits
3. Pool Migration: Move to higher APR farms when beneficial
4. Gas Optimization: Batch transactions during low congestion

Tax Considerations

• Farming rewards may be taxable income
• Track harvest dates and WICS prices
• Consider jurisdiction-specific regulations
• Consult tax professionals for large positions

Troubleshooting Common Issues

Transaction Failures

Problem: Staking transaction reverts Solutions:

• Increase gas limit
• Check LP token balance
• Ensure contract approval
• Verify network connection

Missing Rewards

Problem: WICS rewards not showing Solutions:

• Refresh page and reconnect wallet
• Check if farm is still active
• Verify you're on correct network
• Allow time for blockchain updates

Unstaking Issues

Problem: Cannot withdraw LP tokens Solutions:

• Check if there's a lock period
• Ensure sufficient WIC for gas
• Verify unstaking amount
• Try smaller withdrawal amounts

Future Farming Features

Planned Improvements

• Auto-compound Vaults: Set-and-forget farming
• Cross-chain Farming: Farm on multiple networks
• NFT Boosts: Special NFTs for farming multipliers
• Prediction Markets: Farm based on market predictions

Community Requests

• Flexible Lock Periods: Choose your own lock times
• Partial Harvesting: Claim only portion of rewards
• Social Farming: Group farming pools
• Gamification: Achievement-based rewards

Ready to start farming? Begin earning WICS tokens by staking your LP tokens in our high-yield farms on WicSwap (opens in a new tab)!