Farms Jamonswap

https://jamonswap.finance/farms

Farms.


In Jamonswap, as in other DEX, we encourage the contribution of liquidity from users through the
well-known Farms or FARMS.


What is an LP?


To understand what a farm is, we must first understand what an LP token is.
The LP token is a token representing the liquidity contributed to a given PAR. The LP is composed
of two different tokens at 50%, for example ham/matic, this LP allows the DEX to have enough
liquidity for the exchanges of the different users.


The LP holder receives a percentage of the trades made on the DEX with that pair and can
obviously undo it at any time by receiving a corresponding 50/50 of the tokens contributed.


What does a farm consist of?


In a farm we have a pool in which we deposit some LP liquidity tokens and the users who
contribute this liquidity receive, apart from the percentage of the commissions mentioned above,
a second token as a reward, to further encourage the contribution of liquidity and thus ensure the
proper functioning of the DEX.
In the case of Jamonswap, the reward token is the JSTLP, which, unlike other rewards tokens, has
an additional utility.


The JSTLP can be traded just like the other rewards tokens offered by other DEX, but the JSTLP
in stake gives you access to an extra reward, coming from the 0.1% fee that the Jamonswap
token (Native token) and the J-Share (Governance token) have.
This way the user gets a double reward and it is much more attractive to provide liquidity in our
DEX.


Can this be detrimental to the ecosystem?


This is a problem common to the rest of DEX, which we tried to solve from the very beginning. We
all know that in the face of an excessive issuance of currency, its value tends to fall, if the market
does not inject an amount in $ equivalent to that which is distributed, this seriously harms the
native tokens of the various projects that must seek some burning systems to try to curb such
excessive issuance.
In the case of Ham is different, because instead of distributing the native token we give a third
token explained above, which also gives benefits in stake and participates in the burning of the
native token Ham.


So in this way we increase the burning of Ham, while the emission is null in this aspect.
So based on this, this system is more attractive for the user who provides liquidity (by obtaining a
double reward), more attractive for Ham investors by helping to burn supply and also protect its
issuance and more attractive for the DEX as it can achieve greater liquidity, which has a positive
impact on our users.


What are you waiting for to join our farm?

Leave a Reply

Your email address will not be published.