❓FAQ
Frequently Asked Questions
A. About us
I. What is TokensFarm?
TokensFarm is a cross-chain Farms-As-A-Service provider offering deployable farms that can be live within hours. It provides an easy-to-use interface, allows projects to incentivize liquidity, and strengthens token and project stability while gaining exposure to TokensFarm hundred of thousands of followers and users. TokensFarm supports all EVM chains & DEXs and doesn’t require coding or integrations.
At the same time, it enables crypto investors to have a one-stop shop to earn a yield on different tokens, lowering the entry barrier to DeFi space.
II. Who created TokensFarm?
TokensFarm was established during the summer of 2021 by the Decentralab Team. Dcentralab was founded in 2017 to create an ecosystem of on-chain products designed to accelerate blockchain mass adoption. To date, we’ve developed four different products, including ChainPort and TokensFarm. Decentralab’s products produce value, increase transparency, and lead the decentralized revolution.
III. Is TokensFarm secure?
TokensFarm puts a heavy emphasis on security and understands its profound importance. TokensFarm’s contracts have undergone a minimum of two independent audits. These audits were conducted by the biggest names in the world of blockchain security.
IV. Which blockchains are supported?
TokensFarm supports all leading blockchains and DEXs. Supported chains include Ethereum, and most EVMs, while supported DEXs include PancakeSwap, Uniswap, and Quickswap. TokensFarm will add additional DEXs and chains in the future.
V. Which wallets are supported?
TokensFarm supports all popular wallet options. Supported wallets include Metamask, Ledger, Trezor, Coinbase Wallet, and many others.
B. Yield Farming
I. What is Yield Farming?
Yield farming is an investment strategy based on DeFi (decentralized finance) to maximize cryptocurrency returns. Returns for yield farming are generally calculated in annual percentage yields or APYs.
II. What is a dynamic APY?
The Dynamic APY calculates and adjusts the APY based on the number of farm participants and the number of tokens or TVL locked.
The fewer participants a farm has, the greater the rewards. Dynamic APY also works in vice versa, and the larger number of participants a farm has, the lower the APY.
III. What is TVL, and how is it calculated?
Total value locked or TVL is the number of user funds a DeFi protocol holds, usually in a USD equivalent. These funds may be locked in a protocol for different functionalities such as lending, staking, or providing liquidity. TVL is calculated by multiplying the number of tokens vested by their value in USD.
IV. What are the risks of yield farming?
All forms of investment contain risk. With yield farming, the most significant risks are smart contracts exploits, gas costs, and impermanent loss. If not appropriately audited and secured, smart contracts can face exploits and hacks by bad actors. Gas costs or Tx fees can become expensive on specific blockchains at certain times, cutting profitability. Impermanent loss can also affect farmers. When farmers provide liquidity to a token pair on a DEX, one of the tokens can shift sharply in value. If that occurs, it negatively affects the farmers' returns.
C. About Staking Farms
I. What are staking farms?
Staking farms are a smart contract protocol available on TokensFarm. On staking farms, users receive rewards in the form of tokens for staking a specific token on the protocol. The rewards are provided by the farms' creators and are usually a crypto project. Typically the rewards are in the form of the token required for staking, although projects may select other tokens.
II. Where do staking rewards come from?
The token rewards are supplied by the crypto project or entity that launched the farm.
III. Is there a minimum or maximum amount to stake?
Currently, there are no minimum or maximum staking amount limitations on TokensFarm.
IV. Will I be able to withdraw my tokens at any time?
Different farms have different time requirements for withdrawing tokens while staking. Please check the farm where you wish to stake tokens for requirements before staking.
V. Are staking rewards in the form of the same token staked or different tokens?
The staking rewards depend on the project that has set them. Typically the rewards are in the form of the same token staked, although a project can choose a different token.
VI. When will I receive my rewards?
Farmers will receive their staking rewards as soon as the minimum staking time requirements have been completed. Each farm has different requirements for minimum staking time, so check the farm’s information before staking.
VII. Where will I receive my staking rewards?
You can either restake the rewards you’ve received or withdraw the funds. Should you withdraw the funds, the smart contract will send your funds to the wallet you’ve connected.
VIII. Will staked rewards automatically be restaked?
After minimum staking requirements are complete, farmers can choose to restake rewards or withdraw them.
IX. Can I withdraw my rewards and keep the tokens staked?
Yes. As long as all requirements have been met, you can withdraw rewards and keep staked tokens staked.
D. About LP Staking
I. What is an AMM?
While in the past, DEXs relied on order books, all modern DEXs rely on AMMs or automated market making. AMMs require two equal pools of a token pair (e.g., WBTC/USDT) for a token pair to be tradable. Individuals and not the DEX provide liquidity for token pairs.
II. What is liquidity providing?
Providing liquidity is a type of DeFi-based investment strategy. Individuals can provide liquidity on any DEX for any token pair. In exchange for liquidity, these individuals receive LP tokens representing their stake in the liquidity pool.
III. What is impermanent loss?
Impermanent loss is a hypothetical loss called an unrealized loss. This unrealized loss occurs when one of the tokens in the token pair experiences extreme volatility. When this volatility occurs, it would hypothetically be more profitable to hold the tokens. A liquidity provider may still make a profit when experiencing impermanent loss, but it wouldn’t be as great as buying or selling.
IV. What is an LP token?
LP tokens represent a liquidity provider's stake for a specific pair on a DEX. The DEX requires the LP tokens when a liquidity provider wants to withdraw their liquidity from a pool. Liquidity providers can also stake their LP tokens on TokensFarm in exchange for rewards.
V. Where do LP farm rewards come from?
Typically crypto projects deploy LP farms on TokensFarm to ensure continuous liquidity on DEXs. As such, the projects provide rewards.
VI. Will I still earn trading fees if I stake my LP tokens?
Yes. You will still receive fees from trades on the DEX in addition to the LP farm’s rewards.
VII. Why are the rewards not LP tokens?
LP tokens are generated by the DEX when an individual provides liquidity. The LP tokens represent the share of liquidity the provider has lent to the DEX. LP tokens have no real value besides being used to withdraw liquidity or represent their share. TokensFarm offers rewards in tokens when certain LP tokens are staked.
VIII. Will I be able to withdraw my LP tokens at any time?
Different farms have different time requirements for withdrawing LP tokens while staking. Please check the farm where you wish to stake LP tokens for requirements before staking.
IX. When will I receive my staking rewards?
Different farms have different time requirements for withdrawing staking rewards. Please check the farm where you wish to stake tokens for its requirements before staking.
X. Where will I receive my LP staking rewards?
The smart contract will send your funds to the wallet you’ve connected.
XI. Can I withdraw my rewards and keep the tokens staked?
Yes. The tokens staked and the rewards are different types of tokens. LP tokens aren’t widely tradable, while the reward tokens are.
E. About Vesting Contracts
I. What is a vesting contract?
Vesting contracts release the portion of tokens belonging to either the projects team, advisors and/or early investors. Projects can choose between three different types of release schedules in TokensFarm’s vesting contracts.
II. How do I know if I am whitelisted for a vesting contract?
Simply connect your wallet to the contract to see if you’re eligible.
III. How are tokens distributed?
There are three different ways to distribute tokens with TokensFarm’s vesting contracts. In Airdrop, all tokens are released at once to all addresses. There are also linear and iterative releases that release tokens in a certain period or according to an algorithm. In addition, tokens from the vesting contract can be released on different chains. All vesting contracts are fully customizable and adaptable to crypto projects' needs.
IV. What are early withdrawal & burn?
Some users may wish to withdraw their funds early if a project has set a specific time frame for vesting, such as a linear or iterative release. Projects can allow users to do so, implement a form of penalty such as a “cool off” period, or deny their request.
V. What is partial funding?
Partial funding is a functionality that allows a project to place a portion of its vesting rewards in a contract. The minimum required funding is 5% of the total vesting amount. The team can later add more tokens to the smart contract during the vesting period.
Partial funding enables projects to use their tokens for other usages. Additionally, crypto projects can use it to present a lower circulating supply or avoid unlikely contract issues. Distribution will cease if the tokens within the contract have been depleted before the scheduled end of the contract. The reactivation time and costs of the contract are identical to the launch of a new contract.
F. For Projects
I. How much does it cost to launch a farm?
Different farms have different pricing. You can see TokensFarm’s full pricing here.
II. Is there any discount for second and onwards farms?
Yes. TokensFarm offers discounts on second farms and onwards. Contact us for more.
III. Is it possible to make the payment in crypto?
Yes. We accept all major stablecoins as well as bank transfers.
IV. Is it possible to extend the duration of the farm? What is the cost?
Yes. The cost is $2000, which is payable in USDT and USDC. Simply contact the TokensFarm team and let us know the duration you’d like to set.
V. Once the farm is live, is it possible to change its parameters?
Unfortunately no. However, a project can choose to deploy a new farm.
VI. How long does it take to launch a farm?
A farm can go live within a few hours after completing the payment and filling in the specifics.
VII. Can I launch a farm if our token is only traded on CEXs?
Yes. While LP farms may be irrelevant, you may launch a staking farm on TokensFarm.
VIII. What do we have to do to launch a farm?
Simply fill out one of the forms below and stay in touch with TokensFarm’s team.
IX. Do I need to do any coding work to be able to launch the farm?
No coding is required to launch a farm. TokensFarm’s team will deal with all technical aspects.
Who Created TokensFarm?
TokensFarm was created by DcentraLab. Experienced team of developers building blockchain products since 2017, already well known in the cryptosphere for applications such as 2key, Hord and ChainPort.
What is a Crypto Farm (Yield Farming)?
Yield farming is an investment strategy in decentralized finance or DeFi. Yield farming is the practice of staking or lending cryptocurrency assets (tokens) in order to generate high returns or rewards in the form of additional cryptocurrency. This innovative yet risky and volatile application of decentralized finance (DeFi), but skyrocketed in popularity recently thanks to further innovations like liquidity mining. Yield farming is currently the biggest growth driver of the still-nascent DeFi sector.
What is the difference between LP Farms and Staking Farms?
Technically they have the same type of coding logic used in the smart contracts, but most people like to call it Farming. Staking is token per token you get the 0.3% of fee and the rewards only per this token you chose. LP farming will be for a pair of tokens (example: ETH-BUSD) - by adding liquidity you will get in return the LP token that will be generated instead of the 2 other tokens, with this LP token you are staking on the LP farm.
Why use yield farming?
A farm incentivizes users to not sell their tokens by earning rewards for keeping the tokens staked in the smart contract. When projects set up a farm, they push rewards (their tokens) into the contract, so users will earn those rewards for free, just by staking tokens in the farm. The calculation of earning rewards is through APY.
Where Are The Rewards Come From?
Rewards are deposited by the token issuer as part of their marketing, and incentive initiatives. Crypto tokens usually have a limited supply, therefore, the biggest rewards will be given in the early stages of any project.
How Can I Earn Rewards?
Choose any of the live farms and stake tokens/LP tokens on your farm of choice. Read the farm’s guidelines to ensure that you stake when it is live, stake for the minimum days period, and see any other important information regarding how the farm operates.
What Is APY/Dynamic APY and how is it calculated?
In TokensFarm, we use a Dynamic APY, to automatically adjust the APY value for the active period. Dynamic APY increases as users leave the farm, and decreases as users join. Hence, the more tokens staked into a farm, the lower the APY becomes. At TokensFarm, we consider 100-300% APY as a healthy target for projects’ farms.
Calculating APY = (Reward per block / Number of tokens staked for that block) * Number of blocks in 1 full year
Calculating Rewards per block = Project's total rewards / Total number of blocks in the farm
What Blockchains are supported?
Is There a Limit to the Amount of tokens or People That Can Enter a Farm?
There is no such limit. The contract can have as many participants and tokens as possible. The rewards are divided according to the relative holding of each participant out of the total tokens in the contract. The APY adjusts accordingly, as users adding or removing tokens from the contract.
What is the Security Protocol of TokensFarm?
TokensFarm is using the highest security standards in the crypto space. All of the TokensFarm smart contracts have been audited by a minimum of 2 auditors. Audit reports can be found on the website footer. All TokensFarm smart contracts are independently audited by leading blockchain security firms, such as Certik and Zokyo
Despite the above, before using this site, please do your own research on how staking and smart contracts work. Make sure that you understand the risks, read our Privacy Policy & Terms of Service, and review the audits.
Don’t risk more than you can lose!
TokensFarm has no part in the management of tokens presented on its website. Tokens fall under the responsibility of those projects that issued them.
What is Impermanent Loss?
This phenomenon occurs when the price of a token increases or decreases after a user deposits tokens in a liquidity pool. This change is considered a loss when the dollar value of your token at the time of your withdrawal becomes less than its amount at the time of deposit. Read more here, to learn about impermanent loss. Read more: Here
What is Compounding ?
Compounding refers to generating earnings from previous earnings. Move your rewards made from staking into the tokens that you are staking on the farm. Given the following, compounding is an effective way to increase your rewards earned. Some experts advise compounding once or twice each week. Note that compounding means that you are making a transaction on the chain of the farm. If the chain carries with it high fees, such as Ethereum in 2022, then definitely consider the gas fee(s) prior to compounding.
The thing which earns you rewards is the amount you stake. Logically, if a user stake more - he will earn more. Compounding is the ability of an asset to generate earnings, which are then reinvested or remain invested with the goal of generating their own earnings. In other words, compounding refers to generating earnings from previous earnings. Given the following, compounding is great, and of course, will have much better results. Note: that this action works best on chains with as low as zero Tx fees like BNB, but most probably won't work on the expensive gas fee like on Uniswap/Ethereum, which will eat all of the profit. Increasing the position in the LP carries its own risk of impermanent loss and the added impermanent loss vs the extra gained tokens are not directly comparable but vary on a case by case basis. Also, the act itself of withdrawing some of the reward tokens and buying stable with half of it carries its own impermanent loss possibility to the other side, which again is not directly comparable with the gains, but can vary depending on the case.
What is AMM ?
Why Don’t I Receive LP Tokens as Rewards?
On an LP farm, you stake LP tokens, however, the rewards will always be the Token of the project.
What is the cost to deploy a farm on TokensFarm?
Each farm or contract has a different deployment cost. Prices vary, and are between $2000 and $8500, depending on the type of contract, the chain, and how many contracts have been created for that token before.
Check the pricing page.
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