Make money in DeFi
Farming is a way of making a profit for providing liquidity to a trading pair. Or as they say differently - liquidity mining. To participate in farming, the user must put liquidity in the selected trading pair and add the CDT coin (COFFE DeFi token) to the liquidity. The user will receive a set reward based on the respective Launchpool. Pharming Rewards are calculated from the number of CDTs in the given pool and the number of CDTs in the respective Launchpool.
The maximum amount of CDT that can be put into pharming is equal to the value of your CFF (at the price of the CDT / CFF pool) put into this pool.
You have deposited 10,000 X token and 10,000 CFF token into the pool. The price of 1 CDT is 10 CFF, which means that the maximum amount you can put in this pool is 1000 CDT.
The remuneration is calculated according to the formula:
R = P / (LP / 100)
Where is the reward for 1 CD token located in the liquidity pool.
- R - the amount of the reward for this pool
- P - the number of CDT tokens in the liquidity pool.
- LP - the number of CDT tokens in Launchpool.
The pool of coin X contains 100CDT Launchpool for token X contains 1000 CDT 1000/100 = 100 We divide 1000 tokens in the pool by 100 days We get a total distribution for the pool of 10 tokens 10/100 = 0.1 0.1 token per token in the pool
We got that for one coin in the pool, there is a reward of 0.1 CDT per day - this is 10% per day. This means that the profitability of this coin is 3650% per annum.
Another important point to keep in mind is that after each bounty is paid, the sum CDT in Launchpool will go down and the interest rate will go down.
On the next distribution, we will divide by 100 days the remaining 990 tokens 990/100 = 9.9 9.9/100 = 0.099 0.099 token per token in the pool
We received 9.9% per day 3613.5% per annum
The remuneration is paid to CDT that are in the pool for at least a day at the time of calculation.