Farming characteristics and opportunity
Providing liquidity allows you to get part of the 9% contribution that the mining pool distributes to all farmers like you. Farming creates an incentive to provide liquidity, ensuring that the tokens can be traded on the market.
Every time a trade takes place, the farmers who provide liquidity collect fees of 1%.
Possible ratio changes
The downside of providing liquidity is that the ratio of tokens and ETH in your liquidity position changes with the price. If a token's price rises a lot, the liquidity providers end up with more ETH and fewer tokens than they deposited. If it falls, they end up with more tokens and less ETH.
Rotating rewards to provide seasonal demand
How to farm Seasonal Tokens
Step 1Decide which token you want to farm
Scroll down to the Farm Summary table below to see how much total ETH there is in each trading pair. When the amount of ETH present is in the ratio 5:6:7:8 for Spring, Summer, Autumn and Winter, farming is equally profitable for the four tokens. The trading pair with the biggest shortfall of ETH, in comparison to this ratio, is the most profitable to farm.
Step 2Acquire approximately equal values of ETH and that Seasonal Token
If you initially have ETH but no tokens, you can trade half of the ETH for tokens on Uniswap. If you have tokens but no ETH, you can sell half of the tokens for ETH.
Step 3Provide liquidity at Uniswap
The buttons below the “Seasonal Tokens liquidity” section of this page will allow you to provide liquidity for the token/ETH trading pair that you've chosen. When adding liquidity, it's important to make sure that the fee is set to 1% and the liquidity covers the full range of prices.
Click the "Full Range" button and acknowledge that you accept the risks. Ensure that there's an infinity symbol in the "Max Price" box before proceeding. Then enter the number of tokens that you want to use for farming into the "Deposit Amounts" section of the page. It will automatically calculate the corresponding amount of ETH.
Note: If you haven't used that token with Uniswap before, you will need to do two transactions. First, you'll need to approve Uniswap to use your tokens. There will be an "Approve" button underneath the "Full Range" button, which you can click to allow Uniswap to use your tokens.
When you've approved Uniswap to use your tokens, and the data in the form has been filled out correctly, there will be a "Preview" button that you can click to add the liquidity.
Note: Adding liquidity can cost a lot of gas. Choosing the right time to add liquidity can save a lot of money in gas costs.
Step 4Deposit the liquidity position into the farm
After you've added liquidity at Uniswap, your liquidity position will appear on the table below - “Your unfarmed liquidity positions”. Click "Deposit" to deposit the position into the farm. It will be unavailable for withdrawal for 30 days.
Step 5View your farmed position and your harvestable tokens
When the deposit transaction has been confirmed, you'll be able to see your liquidity position and the number of tokens of each type that you can harvest in the table below that says “Your farm stats”.
Clicking on the "Harvest" button will withdraw the farmed tokens to your MetaMask wallet. The "Withdraw" button will be disabled and will display the next date at which a withdrawal can be made.
Your farm stats
The farm is a smart contract running on the ethereum network, like the tokens. It's designed to incentivize investors and miners to provide liquidity.
Liquidity providers who lock their liquidity in the farm for 30 days receive a share of the farm payouts, in proportion to the amount of liquidity they provide. If there's only one farmer, then that farmer receives 100% of the tokens sent to the farm, even if the quantity of liquidity provided is very small. A second farmer who provides the same amount will take 50% of the farm payouts.
Farming creates a competition to provide liquidity. It ensures that there are always enough tokens on the market for traders to complete their trades.
Add liquidity to one of the token/ETH trading pairs on Uniswap using the buttons above. Ensure that you select "Full Range" for the range of prices, and 1% for the fee tier. Your liquidity position will then appear in the "Your unfarmed liquidity positions" table. Click "Deposit" to add it to the farm and start receiving farm income.
Until October 2022, the farm will pay out rewards in the proportion 5:6:7:8 for Spring, Summer, Autumn and Winter farmers, respectively. Farming is equally profitable for each season when the amount of ETH in the four trading pairs shown in the farm summary is close to the same ratio. If it differs from this ratio, then the most profitable token to farm is the one that will bring the ratio of ETH in the trading pairs closer to this ratio. For example, if there are 5, 6, 7 and 7 ETH shown in the summary table, then Winter is the most profitable to farm, and if there are 4, 6, 7 and 8 ETH shown, then Spring is the most profitable.
The farm ensures that there's liquidity available so that traders can complete their trades. Locking the liquidity in the farm for 30 days ensures that not all of the liquidity can be withdrawn at once. This ensures that, in the event of a panic, there will continue to be liquidity available for trading.
It can be withdrawn within 7 days after withdrawals become available.
You can harvest at any time.
This is caused by a bug in the Uniswap interface that affects some browsers. You can work around the bug by going here, clicking "Select a token", and then pasting the ontract address of the token into the dialog. The contract addresses are shown on the home page.