Farming
Last updated
Last updated
Liquidity provider (LP) positions minted in a pool automatically participate in farming if farming is enabled for that pool. To easily find eligible pools, use the “Active Farming” toggle on the Pools page or navigate directly to the Farms tab.
Farming rewards can be claimed from either the Pools or Farms pages. Eligible positions will be visible on both. To collect your rewards:
Click Approve to authorize the reward contract (one-time action per position),
Then click Claim to receive the rewards.
Farming on Algebra-powered DEXes serves as a reward boost on top of swap fees, incentivizing liquidity provision. However:
Farming rewards are only distributed to in-range liquidity (i.e., positions that are currently active in the market price range),
No rewards are earned during inactive periods, or when there is no trading volume in the pool.
Key Terms:
farming.rewardRate: Amount of reward token distributed per interval
INTERVAL: Duration of the interval
rewardToken.derivedToken: Value of the reward token expressed in the DEX’s main token (e.g., ETH, TON)
feeCollectedTotalTOKEN: Total fees collected across the pool during the interval (in the platform's token)
Example:
• farming.rewardRate: $500/day in USDT
• INTERVAL: 1 day
• rewardToken.derivedTOKEN: 1 TOKEN = 6 USDT
• TVL of the pool: $1,000,000
• Pool Trading Volume: $500,000/day
• Pool Commission Percentage: 0.3%
• Fee Collected: $1,500
In this case, the farming multiplier is 1.33, meaning liquidity providers will receive additional 0.33 TOKEN for each TOKEN of fees collected, provided liquidity is within the active price range.
