Farming
How token farming and yield distribution works on DibDex.
🌾 Overview
Farming on DibDex allows token holders to earn rewards by providing liquidity or staking their tokens. Farming programs are configured by token creators as part of the ecosystem setup.
⚙️ How Farming Works
📥 Staking
Users deposit tokens into a farming contract to earn rewards over time. Rewards are distributed proportionally based on:
- Amount staked — More tokens staked = larger share of rewards
- Duration — Longer staking periods may earn bonus multipliers
- Pool allocation — Each farm has a configured reward rate
💡 Proportional Rewards — Your share of farming rewards is directly proportional to your share of the total staked amount. Stake more to earn more.
💸 Reward Distribution
Rewards accrue continuously and can be harvested at any time. The farming contract tracks each user's share of the total staked amount and calculates rewards accordingly.
🛠️ Creating a Farm
Token creators can set up farming programs with:
| Parameter | Description |
|---|---|
| Reward Token | The token distributed as rewards |
| Duration | How long the farming program runs |
| Total Rewards | Total amount of reward tokens allocated |
| Staking Token | Which token users need to stake |
🔒 Set at Creation — Farm parameters are configured during the token creation process and locked into the smart contract at deployment. They cannot be modified after the fact.
🌿 Harvesting Rewards
To claim accumulated farming rewards:
- Navigate to the Farms page
- Find your active farm position
- Click Harvest to claim pending rewards
- Rewards are sent directly to your wallet
⚠️ Risks
Farming involves smart contract risk. While DibDex contracts are designed with security in mind, users should understand that:
- Staked tokens are locked in the contract until withdrawn
- Reward rates may vary based on total participation
- Impermanent loss applies when providing LP tokens
⚠️ Do Your Research — Always understand the risks before staking. Impermanent loss can reduce the value of your position when providing LP tokens, especially during periods of high price volatility.