Yield Farming INC on PulseX. In the world of DeFi, yield is the… | by Maximus DAO | June 2023

In the world of DeFi, yield is the crown jewel much coveted by everyone. Today we’re going to take an in-depth look at yield farming, specifically how to maximize your yields with yield farming for $INC on PulseX, the primary decentralized exchange (DEX) on PulseChain.

In simple terms, yield farming is the practice of depositing and/or lending cryptocurrencies via decentralized protocols in order to generate a return. This return or “yield” comes in the form of interest and often additional tokens. Yield farming is similar to depositing money in a bank and earning interest, except it’s decentralized with no intermediaries.

PulseX works with the Uniswap V2 liquidity pool model. This model allows users to deposit a pair of tokens into a pool to enable decentralized trading. In exchange for providing this liquidity, they receive 21% of the trading fees generated by the pool.

In addition to trading fees, PulseX offers further incentives for liquidity providers through its incentive program. When users provide liquidity to pools, they receive Liquidity Provider (LP) tokens. These LP tokens can then be deposited into available yield farms on PulseX to earn a new token called $INC.

Currently, an unknown benevolent actor chooses which liquidity pools to fund and determines the rate at which INC tokens will be earned. However, it is planned that these decisions will be managed by a Decentralized Autonomous Organization (DAO) in the future. The DAO will allow holders of the native PulseX token PLSX to vote on these matters, ensuring a democratic and decentralized decision-making process.

Note: There is now a V1 and V2 type liquidity pool on PulseX. V1 pools do not earn trading fees and only have the potential to earn INC. V2 pools have the potential to earn both trading fees and INC.

To start yield farming on PulseX and earn INC tokens, follow these steps:

1. Buy tokens or transfer them to PulseX

In order to provide liquidity, you must hold tokens in your wallet that correspond to the specific pool you wish to participate in. You can buy these tokens directly on PulseX or bridge them from Ethereum.

2. Add liquidity to a pool

Once you have the tokens, navigate to the Add Liquidity page and select the Add Liquidity option. Select the pair of tokens you wish to deposit and confirm the transaction.

3. Get LP tokens

After you provide liquidity, PulseX will issue you LP tokens representing your share of the pool.

4. Put LP tokens into a yield farm

Navigate to the PulseX Farms page, select the appropriate farm and deposit your LP tokens. After depositing, you start earning INC tokens.

5. Harvest your INC

Over time you will earn more INC. To claim your yield, select the farm on the Farms page, then select Harvest.

The value of yield farming on PulseX is ultimately determined by the value of the INC token. Many thought the market would constantly throw it away because people deserved it, but to the surprise of many, INC has performed exceptionally well since its inception. In turn, this successful performance since inception has made yield farming even more attractive to more people and encouraged people to hold on to their INC for potential price increases. Of course, this may change, but Yield Farming INC has become increasingly lucrative.

PulseX offers an enticing opportunity to get involved in yield farming and earn potentially lucrative returns. It is crucial to understand the dynamics of yield farming and be aware of its risks. Despite the potential benefits, yield farming has inherent risks due to crypto market volatility, temporary losses, and vulnerabilities in smart contracts. Always do your due diligence before jumping into DeFi ventures.

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