Ag Science 101 (how to Farm)
Farms re-launch update
Welcome to the official how-to guide for navigating the Alpha release of ARC’s “Farm” product. The guide is designed to cater for both complete beginners, as well as those with a bit more experience. We’ll start out by going over some key concepts before proceeding to describe how to get the most out of our proprietary Decentralized Finance (DeFi) product.
Nothing in this guide constitutes financial advice. ARCwill not be held responsible for any loss. Please get in touch at our Discord if you have any questions or concerns.
If you’re new to Crypto or DeFi, there are a few concepts that you should know about and are often confused or incorrectly used interchangeably.
Staking, from an investor’s point of view, is simply the act of depositing your tokens into a pool and earning rewards for doing so, a bit like a savings or term deposit account. The project may sometimes derive some benefit from users staking their tokens (especially in the case of Proof of Stake networks), but this is outside the scope of this guide. To differentiate from liquidity mining, the simplest form of staking described here is often called “single-sided” staking being the presence of only tokens from a single currency being held within the pool.
Pools are a collection of staked tokens of a specified currency deposited by all stakers. Staking rewards are usually a fixed number of tokens per day, and paid out in proportion to share of the pool that each staker has contributed. If you hold five percent of the pool, it would entitle you to five percent of the rewards.
APY (annual percentage yield) is a calculated return on investment that all stakers receive, and it is inversely correlated to the size of the pool due to the fixed nature of rewards. For example: if the pool doubles, APY will reduce by half as a constant reward is spread across more pooled tokens.
Liquidity pools consist of two different currencies (a pair), the contents of which is used to facilitate transactions on decentralized exchanges such as Uniswap.
Liquidity mining is a more complex staking process whereby in contrast to single sided staking, an investor first converts two currencies into LP (Liquidity Provider) tokens which are then deposited into a liquidity pool. This can often return a higher APY but is subject to other risks such as impermanent loss which can significantly limit realized returns.
Please thoroughly understand the risks involved with contributing to a liquidity pool. ARC will not be held responsible for any loss.
Yield farming is a technique used primarily by liquidity miners of actively managing their staked assets and moving them around between different pools to generate the highest possible APY. In the future, ARC will make this process simpler than ever before by bringing a range of different pools together for easy access via our aggregator interface.
HOW TO FIND THE FARM
- From the homepage (arc.market), click on the bright green “Launch dApp” button, or navigate directly to app.arc.market. Note that for now, Farms is optimized for Chrome, MetaMask is supported on desktop and mobile, and additional wallets are supported on mobile only. Additional browser/wallet support will be added later.
- Follow the prompts to connect your wallet (Ethereum Mainnet). Additional wallet and chain functionality will be added later.
- On the sidebar to the left, click on the “farm” icon, or navigate directly to app.arc.market/farm.
The ARC Farm is an Alpha product that is subject to limitations. It will be enhanced over time via a continuous improvement process. If you are unsure at any stage while using the Farm, please get in touch at on Discord.
A TOUR OF THE FARM
Currently there are five staking options — a ARC/WETH (V2) liquidity pair (LP) paying out a total of 34,246 tokens per day, and ARC single-sided staking paying out a total of 20,547 tokens per day. Rewards boost: The single-sided staking token rewards payout will soon be temporarily increased by +42.0% over a period of 69 days (new daily payout 29,134 tokens). Boost bonus: We’ve also increased the LP rewards by +42.0% for 69 days, they are now paying out 48,556 tokens per day.
Three new farms for USDC/USDT/WBTC have also been added with each paying out 13,698 ARC tokens in rewards per day. The display & filter controls will help to navigate between different pools as more are added over time.
As ARC’s Farms currently operate on the Ethereum Mainnet, gas fees are applicable. These gas fees are paid in ETH to interact with the blockchain and are not levied by ARC. Consider the impact that these fees will have on your staking ROI.
The different pools can be identified by the currency(ies) written in the top right, and the logo(s) displayed in the top left (identified in the yellow boxes).
Note the Deposit Fee, stated as a percentage — this is levied a single time on each amount you stake.
The current APY figure is updated in near real-time, and the currency of the rewards you Earn is also specified. Once you have staked, the rewards you have Earned will be updated in near real-time. The Harvest button will withdraw your Earned rewards to your wallet, while keeping your Staked Amount in the pool. The Details sections shows the current value of all staked tokens in that pool.
The Compound button as shown in the ARC farm graphic above, will collect your earned rewards up to that point and re-stake them into your current staked balance in a single transaction. This allows you to more easily begin earning additional rewards from your existing rewards, as the name suggests much like compound interest in savings accounts or term deposits in traditional finance.
Compounding is only available for those farms where rewards are earned in the same currency as your staked tokens, eg the ARC single-sided staking. For other farms, this option will be greyed out as shown in the screenshot above.
- Once you have decided on a pool, the first step, as is standard procedure when farming, is to Enable (the) Contract, which is a one-off task for each pool and is completed by clicking on the big green Enable Contract button for your chosen option and following the prompts.
- Once enabled, new buttons to Start Farms (add tokens to the pool) and Withdraw your tokens from the pool will appear. This can be done at any time, and withdrawing or depositing tokens will also harvest anything you have Earned.
- For the ARC pool, simply decide how many tokens you wish to deposit and click Confirm. For the ARC-WETH pool, these currencies must first be converted to V2 LP tokens via Uniswap — click on the “LP Link” button to be taken directly to this page.
- That’s it! Simply follow the prompts and your tokens are now earning passive income!
For those that would prefer a video walkthrough of the farms, check out this short YouTube video here: Farms Walkthrough