How does yield farming work in the Animal Farm??

By CryptoJester

So, you’re new to yield farming and you want to know how it works? Where can you find information specific to the Animal Farm? Look no further, this is a guide to the Animal Farm. Click that follow button!

In this guide we’ll explore:

• What is yield farming?
• What are liquidity pools?
• How do liquidity pools affect the price of tokens?
• What is the DRIP Garden, and why was it so important for DRIP?
• How to make money with yield farming?
• Yield farming on the Manor Farm (REV)
• Yield farming on the Animal Farm (DOGS & PIGS)
• How to start in the Animal Farm
• For information about rewards in the Animal Farm, read this: https://readmedium.com/how-do-rewards-work-in-yield-farming-and-staking-animal-farm-specific-eaffd75870a1

1. What is yield farming? Yield farming is a feature of many DeFi sites that allows users to earn rewards by loaning their assets to DeFi exchanges. Yield farming is a relatively new way to earn money on your crypto without having to sell it. In yield farming, you retain ownership of your assets while letting a DeFi site hold it. In exchange, that site gives you reward tokens (for example, Pancake Swap rewards you in CAKE tokens for farming your crypto assets). Yield farming takes advantage of “liquidity pools”.
2. Liquidity pools allow users of a DeFi site to exchange one token for another. In a traditional exchange (like Binance, Coinbase, or KuCoin), the platform doesn’t actually hold any assets directly. Instead, the assets are held in user wallets on the site. Transactions are made on a “market”, where users buy at a certain price and sell at a certain price. When a match between a buyer and a seller price is made, the order is filled. On DeFi exchanges, however, there is no “market” holding a list of unfilled orders. Instead, users “swap” their coins using liquidity pools. Liquidity pools contain *two* different assets which been paired together. A user looking to buy doesn’t have to wait for an accompanying user to sell. Rather, a user deposits their coins in a liquidity pool, and withdraws equal value of the coin they want to have. Actually, they withdraw *nearly* the value, because there are fees attached to this kind of exchange, called “swap”. Liquidity pools contain the pairs of tokens needed for this exchange.
3. Liquidity pools can affect the price of tokens. Let’s say that a given liquidity pool contains both BUSD and BNB. This pool is called the BUSD-BNB pool. And when this pool is created, it is created with equal value of BUSD and BNB. Perhaps there are 1,000,000 BUSD tokens and $1,000,000 *worth* of BNB. If one BNB is worth $500, then $1,000,000 worth of BNB would be 2,000 BNB. If a user wants to buy 10 BNB (worth $5,000), they would give 5,000 BUSD tokens to the pool. They would get 10 BNB back and the swap is complete (ignoring the fees for a moment). However, the pool is now changed. There was 5,000 BUSD added and 10 BNB removed. But, the pool is still holding equal value of each asset. So, now 1,005,000 BUSD tokens is considered equal to 1990 BNB tokens. 1,005,000 BUSD divided by 1990 BNB means each BNB is now worth $505.02. The price of BNB has increased by $5, even though the user exchanged equal value at the time of the swap. (This price increase would be corrected by something called arbitrage, but this article will not go into that).
4. This introduces some issues when one asset changes value and the other one does not. For example, if DRIP is paired with BNB, and BNB decreases in value, then DRIP would be pulled down with it. Remember, they have equal value in the pool. To solve this problem for DRIP, the DRIP Garden was created. The DRIP garden gave users a chance to deposit to a new liquidity pool, which paired DRIP with BUSD, called DRIP-BUSD. The DRIP Garden incentivizes users to create and deposit DRIP-BUSD, thus creating a strong price shield for DRIP. Now, there is a large pool of DRIP-BUSD. When BNB drops, the DRIP-BUSD pool keeps DRIP from dropping. (Don’t have DRIP yet? Use my referral code!) [http://drip.community/faucet?buddy=0x15A6429C32b3C1cd03b427f80D5170690d1f706]
5. To make money with yield farming, you need to first add to a given liquidity pool by creating liquidity pool tokens, called LP tokens. If you want to add to the BUSD-BNB liquidity pool, you need to own both of those tokens, and the same value of each. Then, you go to Pancakeswap and add liquidity to that pool. After you have done that, you will have BUSD-BNB LP tokens in your wallet. If you do nothing but hold these tokens in your wallet, they ever-so-slightly increase in value over time (assuming the individual assets stay the same price), because a tiny fraction of the transaction fees are provided to the holders of the LP tokens whenever a swap is made. However, sites like Pancakeswap also give you the opportunity to lend your LP tokens to the site itself. That is called yield farming. By lending your LP tokens to the site, you are paid in farm reward tokens. Pancakeswap rewards users in CAKE tokens. The Animal Farm rewards users in DOGS and PIGS tokens.
6. The Manor Farm was a robust pre-sale for The Animal Farm. In the Manor Farm, users staked LP tokens (yield farming) and single assets (staking) to earn the presale token, Revolution (REV). This token was used to buy into the Animal Farm presale. In the Manor Farm, there were high-yield farms with deposit fees. The deposit fees were used to strengthen the platform through marketing and low gas fees, while the farms allowed users to generate high amounts of REV tokens. There was also a REV “Safehouse”, where users could stake their REV in a single-asset pool and earn BUSD. This was the first single-asset pool in DeFi to reward BUSD instead of a site-specific reward token.
7. The Animal Farm will reward users in DOGS and PIGS tokens. Basically, the REV farms and pools are changing to DOGS farms, and the REV Safehouse us changing to the PIGPEN, which will reward users in BUSD for their PIG tokens.
8. When you first enter the Animal Farm, the first thing you’ll want to do is get some DOGS and/or PIGS. There are two ways to do this. The first way is to purchase them off Pancakeswap. Follow this link to buy DOGS and PIGS (goes live on 2/1/2022):
9. DOGS: https://pancakeswap.finance/add/0xe9e7CEA3DedcA5984780Bafc599bD69ADd087D56/0xb42c9cdAbf51dDbb412c417628cA42d5D8130543
10. PIGS: https://pancakeswap.finance/add/0xe9e7CEA3DedcA5984780Bafc599bD69ADd087D56/0x2476aBF8B523625f548cFAA446324fe61eeD69FC
11. The second way is to farm for them. There are a great variety of yield farms and staking pools on the Animal Farm, including: DRIP/BUSD, BNB/BUSD, USDT/BUSD, USDC/BUSD, TUSD/BUSD, DAI/BUSD, BTCB/ETH, ETH/BNB, BTCB/BNB, ETH/USDC, BTCB/BUSD, USDT/BNB, CAKE/BUSD, CAKE/USDT, CAKE/BNB, BELT/BNB, DOT/BNB, LINK/BNB. To farm, simply have equal amounts of each token pair in your wallet, and add liquidity Pancake Swap to create your LP tokens, and then add your LP tokens to the farms on the Animal Farm!
12. If you found this guide helpful, please consider adding my link as a referral on Animal Farm:
13. https://theanimal.farm/referrals/0x15A6429C32b3C1cd03b427f80D5170690d1f7061
14. AND, if you don’t have DRIP yet, you’ll need a buddy to start. Use mine!
15. http://drip.community/faucet?buddy=0x15A6429C32b3C1cd03b427f80D5170690d1f706