Farming

Farming puts your log tokens and that log's paired token into the pool and stakes the liquidity so it can receive the farmer share of $CHOP funded by fees.

What you earn#

After the log-token burn and any partner share, the remaining fee value is converted to $CHOP by the configured fee route. 20% of that $CHOP is burned and farmers share the other 80%. See Fees and where they go for the split.

How much of the paired token you need#

Liquidity goes in at the pool's current price, so the app calculates the paired token needed to match your log tokens. Anything that doesn't fit is refunded in the same transaction.

Slippage#

The default is 1%. If the pool price moves more than that before your transaction lands, it fails and nothing moves. You can choose 0.5%, 1% or 2%.

Impermanent loss#

A pool rebalances as prices move: it sells the side that's rising and buys the side that's falling. If the log token's price moves a lot, you can end up with less value than if you'd just held. Both sides of this pool move, so impermanent loss can be larger than in a stablecoin pool. Fees offset it, but they don't always cover it.

Example: you add 1 chETH and the same value in its paired token. As both tokens move, the pool continually rebalances your share. Holding the two tokens outside the pool can be worth more than the rebalanced position. That difference is impermanent loss. If the relative price returns to where you started, it disappears.

Your paired-token and $CHOP exposure#

Part of your position is in the paired token, while rewards are paid in $CHOP. Either token can fall in value.

If nobody has staked liquidity in a log, 100% of that log's rewards are burned until farming begins.

Stop farming#

Stop farming unstakes your liquidity and removes it in one transaction. You get back log tokens and the paired token, and any rewards you've earned are paid out automatically. There's no lockup and no fee beyond gas.