How to create a yield farm on SushiSwap. “Yield farming” is a decentralized… | by Yield Guild Games | Yield Guild Games

Yield farming is a decentralized finance (DeFi) tool that acts as a crypto savings account, allowing you to earn interest for simply holding and staking tokens — like YGG. It’s also a way for DeFi platforms like SushiSwap to encourage users to provide the “liquidity” needed for a decentralized exchange to facilitate exchanges between tokens.

According to SushiSwap: Liquidity pools are places where tokens are pooled so users can use them to trade in a decentralized way. These pools are created by users and decentralized apps (or dapps for short) who want to profit from their use. To pool liquidity, the user provides two tokens in equal amounts: the primary token (YGG token in this case) and the base token (usually ETH or a stablecoin).

In this case, SushiSwap will offer its native SUSHI tokens as an incentive for users to provide both YGG tokens and ETH to act as liquidity for the market. SushiSwap’s “2x Rewards Farm” is a rewards program that allows users to earn rewards in SUSHI and YGG tokens for every second they deposit and hold required cryptocurrencies on the SushiSwap platform.

There are some risks associated with DeFi yield farming, so please do your research. Here’s the official guide from SushiSwap and an excellent guide from Coindesk.

Watch the video above or check out a step-by-step guide below on how to add liquidity to SushiSwap so you can start earning SUSHI and YGG rewards from the SushiSwap 2x Rewards Farm.

Remember that ETH gas fees are required to interact with the SushiSwap platform, so make sure you have extra ETH for gas fees.

There are four steps to successfully yielding a farm via SushiSwap’s 2x Rewards Farm (scroll down below for a more detailed guide on how to complete these four steps):

1. provide liquidity to the YGG/ETH liquidity pool giving you Sushi Liquidity Pool (SLP)* tokens.
2. Mission acquired SLP tokens for the 2x Rewards Farm for YGG/Wrapped ETH (WETH) to earn rewards in SUSHI and YGG tokens.
3. harvest to claim your rewards.
4. Mark out Your YGG and ETH from the liquidity pool to stop yield farming and reclaim your staked tokens.

A special note for all Axie players in the YGG community: SLP (Sushi Liquidity Pool) tokens on SushiSwap are not to be confused with SLP (Smooth Love Potion) tokens on Axie Infinity.

Watch this walkthrough video for instructions, or read the step-by-step guide below.

To provide liquidity in the YGG/ETH pool:

1. Go to app.sushi.com and connect via MetaMask.

2. From the SushiSwap menu, click Pool and provide liquidity by selecting the YGG and ETH pair. You can choose your budget by entering a value for both tokens. SushiSwap calculates the appropriate amount of ETH to add to the pool as well. In the example below, we add 52.91 YGG tokens to the YGG/ETH liquidity pool, which equals 0.049 ETH. Confirm the transaction when a MetaMask prompt appears.

Once approval is complete, you can confirm delivery to the pool. Check the details before confirming.

3. In return for adding ETH and YGG tokens to the pool, you will receive YGG/ETH pool tokens to prove that you own part of the pool. These are known as Sushi Liquidity Pool Tokens (SLP) tokens.

As an example, we get 1.51347 YGG/ETH pool tokens.

How to participate in the YGG/WETH farm:

1. Once you have your SLP tokens, go to the farm page, select 2x Rewards Farm in the left menu, then click on the YGG/WETH farm. Your SLP token wallet balance is displayed above the Stake field. Choose MAX to stake all your available SLP tokens.

2. If this is your first time wagering, you must authorize SushiSwap to interact with your SLP tokens before you can complete the transaction. Once this is done, click “Confirm” above MetaMask.

3. You should be able to see the total of your SLP tokens on the right side. If you check below you will see that you are continuously accumulating both SUSHI and YGG tokens as you wager your tokens.

4. You can keep your wagered SLP tokens in 2x Rewards farm and earn rewards continuously. As detailed in this article, a maximum of 182.7 SUSHI and 5,556 YGG tokens will be distributed pro rata to each staker per day, with the pool running for 90 days starting July 31, 2021.

How to harvest rewards:

1. Click “Harvest” to claim the current rewards on the 2x Rewards Farm page, then confirm the transaction via MetaMask. You can skip this step if you plan on removing all your tokens, as the rewards will be harvested automatically when you unstake (which also saves on gas fees).

How to unpick (stop) yield farming:

1. Now, to remove your YGG/WETH SLP tokens, click MAX in the box above the Unstake button. Click “Unstake” and confirm the transaction via MetaMask.

2. You can then check if the YGG/WETH farm now has 0 SLP tokens. Your tokens will appear in your wallet balance on the left.

3. Now you need to remove your YGG and ETH tokens from the liquidity pool. Click Pools in the top menu. You will see all open liquidity positions you currently have on SushiSwap. Click on the YGG/ETH liquidity pool to view your pool token balance.

4. Click Remove. Remove the intended amount of SLP tokens (up to 100%). Check the amount of YGG and ETH that will be refunded and note that it may differ from the amount you initially deposited.

Click RemoveOnce you click “Remove” you will see the above page. Enter the percentage to be removed.

5. Click on “Confirm Payout”. Confirm via SushiSwap and then confirm the transaction via MetaMask.

6. Once done, you can verify your MetaMask account and see the ETH and YGG tokens back in your wallet.

Once all these steps are completed, you have successfully farmed yields and earned double rewards with YGG on SushiSwap. Congratulations!

For more information on buying YGG tokens, please click here.

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