V3 Farming

The XSwap team remains committed to the ongoing enhancement of the XDC network, the projects within its ecosystem, and its vibrant community. Currently, the team is actively engaged in crafting a new farming platform tailored explicitly for the V3 iteration of our decentralized exchange (DEX). This platform will serve as a catalyst for projects looking to encourage liquidity providers to augment liquidity for their tokens, thereby fostering enhanced stability, increased trading volume, and heightened interest among traders.

This article aims to guide you through the process of participating in the incentive program.

To engage in an incentive program, it is imperative to hold a liquidity position in the corresponding pool of XSwap V3, with specific tokens pairs and fee tiers aligning accordingly. Each such position is represented by a non-fungible token (NFT), and every NFT position, once staked, independently accrues rewards.

Upon navigating to the main page, you can select the desired incentive program, gaining access to fundamental information regarding the program.

Upon accessing any of the programs, you will find comprehensive information regarding the incentive program and its associated liquidity pool. Each program operates within a specific time frame and is allocated a predetermined total rewards pool to be distributed throughout its duration.

The Annual Percentage Rate (APR) is a key metric, determined by factors such as total rewards, rewards token price, and the overall value of the locked pool. It serves as an approximate value, calculated using the formula:

APR = (rewards_per_second * seconds_in_year) / total_value_locked * 100.

The vesting period denotes the duration during which a position must remain active. If the price remains within the staked position's range for the entire vesting period, the position can claim 100% of the rewards. Conversely, if the price stays within the range for a shorter duration, the position can claim a proportionate share of the accrued rewards, calculated linearly. This feature safeguards against liquidity manipulations with excessively tight positions.

For those with pertinent liquidity positions, these will be displayed at the bottom of the page under the "Relevant positions" section.

It Is important to note that positions deemed non-relevant are not displayed on this page. Each position is identified by its NFT ID, liquidity value, and an indication of its active status, signifying whether the price is within the designated range. Inactive positions, those where the price is not within the specified range, do not earn rewards, although they can still be staked. There is no limit to the number of NFT positions you can stake.

Upon clicking "stake," your NFT is seamlessly transferred to the smart contract, and your position is subsequently relocated to the "Staked positions" section.

From this point forward, your position begins accruing rewards as long as it remains active (with the price within the designated range). You can easily monitor the accumulated rewards and the percentage of the vested period.

While it's possible to unstake your position at any time, it's advisable to wait until the vested period reaches 100% to ensure that all remaining rewards are successfully claimed. The claiming of rewards and the unstaking process occur in a single transaction; there is no separate option for claiming rewards.

Upon clicking "unstake," your NFT is returned to your account along with the earned rewards.

For projects interested in establishing an incentive program, the process involves deciding on the program's duration, reward token, its quantity, and optionally, a vesting period. To initiate this, please reach out to the XSwap team.

Watch the video on V3 Farming.