Yield farming, or liquidity mining, is a relatively new concept in the world of decentralized finance (DeFi). It allows users to generate passive income by providing funds to liquidity pools, thus becoming liquidity providers (LP). Liquidity pools are smart contracts that contain funds, and are what allow swaps to happen on decentralized exchanges (DEX) like PancakeSwap. Users can provide a wide variety of cryptocurrencies to these pools, and exactly which depends on the platform.
It is a very lucrative opportunity for investors to make money, however, like all things finance, it does carry certain risks. These will be explained further along in the Gitbook.
Farmhub aims to innovate in the DeFi space. It consists of various yield-farms, that are inter-connected, and although this is already unprecedented, it’s just part one of our innovation.
Traditionally, every Binance Smart Chain (BSC) yield farm has a native token 'spawn-rate'. This means that a certain number of native tokens is created every block (3 seconds). This creates a large issue: inflation. This causes the value of each token to constantly decrease, unless the number of investors in a given project keeps growing, which is not indefinitely sustainable.
Part two of our innovation is combating inflation with a brand-new, original time-limited staking contract. Eagle Farm is the first attempt to implement this contract. When staking on Eagle Farm, users can only earn rewards for 21 hours, and a large portion of the tokens they stake for the duration are burned or deposited into an Eagle's Nest. You cannot obtain EAGLE tokens by any means other than staking (feeding the eagle) TOAD, MOUSE, SNEK, COBRA, or BUSD.
What is an Eagle’s Nest? This is part three of what makes Farmhub unique, and since it is the most important one, it deserves a whole page to itself.
Getting started is very simple! All of our farms operate on the Binance Smart Chain . This means you have to connect to the network first. In order to do that, you need to have a wallet. We recommend using Metamask. After installing Metamask and setting up your wallet, you will have to add the BSC network to your network list. Click here for a network set-up guide.
When that’s done, head over to farmhub.community and choose one of the farms. Since Eagles can only be farmed with Mouse, Toad or BUSD, if you want to provide liquidity for other tokens in order to earn Mouse or Toad, we suggest you head over to their respective websites and checking out what tokens you can provide for the liquidity pools.