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Yield Farming Example
For more clarity, let's dive in through an example:
1. On Day 1, let's say you have decided to provide liquidity in a pair and have as a result obtained 3,000,000 LP Tokens (LPTs). You then stake those 3,000,000 LPTs in their corresponding farm.
2. On Day 2, you decide you want to farm more $BSWT in this particular farm. Then, you provide more liquidity and you get as a result 2,000,000 LPTs. You then stake these 2,000,000 LPTs, so you now have 5,000,000 LPTs in your Yield Farming position. Upon staking these additional 2,000,000 LPTs, automatically, the rewards accrued from Day 1 for staking 3,000,000 LPTs get calculated and sent to your wallet. Starting from Day 2, rewards for 5,000,000 LPTs will start accruing.
3. On Day 3, you decide you want to withdraw 1.500,000 LPTs. Upon withdrawal of the 1.500,000 LPTs, the rewards for staking 5,000,000 LPTs on Day 2 get calculated and sent to your wallet. You now start earning rewards for 3,500,000 LPTs staked.
4. On Day 4, you decide not to add or withdraw any LP tokens, so your LPTs amount doesn’t change. But you decide to harvest your current rewards, so then rewards for staking 3,500,000 LPTs during Day 4 will get sent to your wallet.