Yield Farming on Wingswap-Explained.

WingSwap is the first DeFi platform that provides AMM, Yield Farming, and integrated NFT Farming functionalities on Fantom. WingSwap aims to provide a one-stop DeFi service platform on the most emerging blockchain, Fantom Opera.

AMM Explained:

Automated market makers (AMMs) are part of the decentralized finance (DeFi) ecosystem. They allow digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. AMM users supply liquidity pools with crypto tokens, whose prices are determined by a constant mathematical formula. Liquidity pools can be optimized for different purposes and are proving to be an important instrument in the DeFi ecosystem.

Liquidity pools explained:

Liquidity providers and liquidity pools play a major role in DEX (AMM models). The users provide the pool of tokens with a proportionally equal amount of both tokens, so that pool helps to enable the smooth trade of tokens in that pool. As a result, the greater the liquidity on DEX, the smoother the trade. The LPs are very important to providing low-slippage trades for traders.

Liquidity pools are the major backbone of AMM protocols, so the AMM platforms offer governance tokens as an interest in their locked tokens.

How to start earning on wing swap Via LP farming:

Wingswap provides users with high APR pools for LP farming and staking in the Wingswap protocol. Users who lock their tokens in the corresponding pool will earn the interest based on the APR of the pool.

Apart from the interest generated from the pool, LP providers can also earn the fees from swaps. For example, whenever a user swaps, the fees are redistributed to the corresponding liquidity pool proportional to the number of tokens staked.

Example:

1. 10 LP tokens are representing 10 WIS and 10 FTM tokens, and we have: 1 LP token = 1 WIS + 1 FTM

2. Someone trades 10 WIS for 10 FTM and someone also trades 10 FTM for 10 WIS.

3. The WIS/FTM liquidity pool now has 10,017 WIS and 10,017 FTM.

4. Each LP token is now worth 1,00017 WIS + 1,00017 FTM.

Walkthrough for Liquidity providing and yield farming:

Wingswap already has approximately 3 million TVL on the Yield Farming protocol, and those users are earning insane interest on the assets they have staked on the platform.

Wingswap runs on the Fantom ecosystem, so for every transaction on Wingswap, you need to pay a small transaction fee in FTM tokens. Do not worry, fees are very low compared to all other chains. It will cost you pennies.

So deposit FTM to Metamask. Go to the website: https://app.wingswap.io/. Now go to the farm page and check which pool you like the most. Many pools have high APRs (ranging from 50% to 600% APR) in the wingswap. Select the best pool you want to provide the liquidity for.

Here I selected the WIS-FTM pool for an explanation. It has a 592% APR, which is very high. Many of the other pools also have high APR, so select based on risk. Be quick. As the pool size increases, the APR might decrease. “Be early and enjoy farming.”

Let’s say you selected the A-B pool. In my case, A is WIS and B is FTM. Now go to the swap page and buy an equal proportion of A and B tokens. For example, if you want to provide $1000 worth of LP for the A-B pool, now buy $500 worth of A tokens and also $500 worth of B tokens. In my case, I wanted to provide $100 worth of LP for the WIS-FTM pool, so I bought $50 worth of WIS and $50 worth of FTM from the swap page.

Now go to the liquidity pool page, select the pool that you want to provide liquidity for, and then click on “Add liquidity instead”.

Now select the number of A tokens you want to provide the liquidity. The system automatically matches the corresponding equal amount (in USD) of B tokens. Then click on supply.

Boom! You have successfully provided the liquidity for the A-B pool (in my case, the WIS-FTM pool). Now you will receive the corresponding number of LP tokens for the A-B pool based on your pool weight. This acts as a receipt for the assets you supplied. So these LP tokens will be used for yield farming or to remove liquidity from the protocol. Now you can earn part of the fee whenever a user swaps from your pool of tokens. And the tokens (from the fee) are redistributed to the pool proportional to your pool weight.

For yield farming, go to the farm page. Select the A-B pool (in my case, WIS-FTM). Click on “Stake LP” and click on “max” (or whatever amount you want to stake) and then click on “confirm”.

Horray! That’s it. You have successfully staked your LP tokens in the A-B pool and are eligible to earn the interest corresponding to the APR.

Claim rewards and remove liquidity:

If you want to claim the rewards that you are earning, Go to the farm page, select your pool, and then click on “Harvest”.

40% of rewards will be unlocked immediately during the bonus period, 60% will be locked for 3 months after the period ends, and the remaining 60% will be linearly distributed over 6 months. This mechanism is to maintain sustainable rewards for yield farming and to make all the farmers earn a handful of rewards. This also helps them maintain the WIS price unaffected (or less affected even if the APR is high). It mainly prevents dumps that come from farming. The vesting schedule and schematic flow for yield farming rewards are shown below. This will be very positive for the price growth of WIS in the long term as well as APRs will also decrease as time gets older.

If you want to remove liquidity, first unstake LP tokens from the farm page and come to the liquidity page. Now select the pool you provided liquidity for and click on remove. Now choose 100% and click confirm. That’s it. You can get back your A and B tokens whenever you want.

Wingswap have VIP staking feature:

✔Allows users to stake WIS or LP Tokens and earn more rewards than Normal Staking.

✔Users can stake their tokens in a flexible period. The longer the lock period, the higher the rewards.

✔Receive an instant amount of xWIS upon usage

How about getting an opportunity to invest in new IDO projects on wingswap along with farming? Cool, right?

Wingswap has an integrated launchpad platform, making it a one-stop-defi in the Fantom ecosystem. The only way to enter the IDOs on wingswap is with a wings ticket. The wings ticket can only be bought with Xwis tokens. The only way to earn Xwis tokens is by interacting with the platform. Like participating in swaps, liquidity providing, yield farming, staking, etc., based on volume, you will get Xwis tokens proportionally.

So, if you start yield farming on Wingswap, you will also get Xwis tokens proportional to the amount you supply. The more you supply as LP, the more Xwis tokens you earn. More Xwis tokens will help you buy more Wings tickets, which will increase your chance of being selected in IDO.

1 shot, 2 birds, right? Yes, indeed😜!

Risk-Free pools (Stable coin pool and single-sided staking):

  1. Wingswap also has a risk-free farming facility where users can supply single assets for staking and earn WIS tokens (Wingswap governance tokens). Go to the stake page and choose the asset you want to stake from the available list with the best APR.

2. WingSwap provides stable coin pools on the platform for users to stake their stable coin LPs on the platform. Stable coin pools help us to minimize the impermanent loss of LPs. If you have stable coins in your wallet, it’s better to stake them in the pool to earn an APR of up to 40%.

About Impermanent loss and how can stable coin pools escape the risk of it: As previously stated, AMM operates on LP pools, so whenever a trade occurs, tokens are removed or added to the pool, causing the price to change (increase or decrease) in accordance with the token ratio. This causes the token rebalancing in the pool and hence results in a change in prices. So, if liquidity is higher, prices will not vary much even if the arbitrageurs come into action. In the process of the token, in this process of token rebalancing in the pool, there is a risk of impermanent losses for the LP provider. Stable coins help them avoid short-term losses because their prices remain relatively constant in the pool.

Safety?

Wingswap is audited by the industry-leading security audit companies, DEFIYIELD and VERICHAINS. As a result, the assets you stake on the protocol are almost guaranteed to be less vulnerable to smart contract exploits. Rest assured.

Fantom Starter IDO projects:

Many projects that are launched on the Fantom starter launchpad are already listed on Wingswap. To provide for the smooth trading of pairs, wingswap has enabled farming pools for respective pairs in the Farm section. The APRs are very juicy right now, ranging from 50% to 500%. Tokens like FS, BRO, MCRT, ESCROW, which are launched on Fantom starter, have farming pools in USDC pairs with APR of 340%, 200%, 34%, and 100% respectively. The earlier you supply and participate in farming, the higher the rewards you get. This is because as pool sizes increase, the reward APR will decrease gradually.

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