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Get a preview of the farming options available on The Hermes Protocol |
Liquidity farming is a type of yield-generation strategy that rewards users who provide liquidity to a decentralized exchange. To enter into a yield farm, users must first create a liquidity position. Briefly, the user must supply equivalent values of two tokens to create a Liquidity Position, which is represented as a 'HERMES-LP' token and returned to the user's wallet.
{% hint style="info" %} At Hermes, 85% of swap fees are returned to LP providers. Earnings from swap fees are automatically compounded without user input, and are realized when one 'Breaks' their liquidity position back into the two underlying tokens. {% endhint %}
Whenever you enter a liquidity position, you should be aware of Impermanent loss, which occurs when there is drastic divergence in token prices within the liquidity position. Impermanent loss is complex idea, but often the rewards from farming often still offset this effect. Additionally, liquidity positions with Stablecoins (1USDC, DAI) or highly correlated assets (hONE/WONE) can reduce this risk.
Decentralized exchanges thrive on liquidity and volume. To help encourage users to contribute to liquidity, DEX's offer additional rewards on top of swap fees. At Hermes, we have designed a farming-emissions-schedule.md that is set to sustainably grow our liquidity over the next 2.5 years.
Typically, the tokens earned by Farming a liquidity position are hyper-inflationary and often serve no additional purposes. This is not the case with our token, HRMS, which has an established (and growing) list of utilities. Briefly, this includes earning a share of trading fee revenue, utilization as collateral in our upcoming lending/borrowing market, and earning partner reward tokens among other things. We will not target unsustainable yields that place undue sell pressure on our token.
To get started earning HRMS, a user must deposit their LP token into the corresponding 'Farm' on our website. After this, they can claim rewards, increase or decrease their position, and track their portfolio through our advanced Analytics dashboard.
{% hint style="info" %} Rewards from Hermes farms are FULLY UNLOCKED, allowing users to compound earnings, realizing true APY from their investments. {% endhint %}
Hermes has spent a lot of time planning our launch farms. It is absolutely critical that there is cost-efficient routing between tokens in order to support a healthy DEX. In an unprecedented move, we are also sharing the exact emissions weighting for these farms to help our users plan out their migration and strategy for The Hermes Protocol.
In addition to them $HRMS will be established as the primary route for all of our DEX to provide higher volume to their LPs, which will translate into a higher APR for their liquidity providers.
| Farm | Classification | Emissions Weight |
|---|---|---|
| IRIS (Single-Staking) | Native | 1% |
| IRIS/WONE (or USDC) | Native | 3% |
| HRMS/WONE | L1/L2 | 30% |
| HRMS/AVAX | L1/L2 | 5% |
| HRMS/MATIC | L1/L2 | 4% |
| HRMS/FTM | L1/L2 | 3% |
| HRMS/BNB | L1/L2 | 5% |
| HRMS/JEWEL | L1/L2 | 2% |
| Farm | Classification | Emissions Weight |
|---|---|---|
| HRMS/ETH | Blue Chip | 8% |
| HRMS/WBTC | Blue Chip | 8% |
| WBTC/ETH | Blue Chip | 4% |
| 1BTC/WBTC | Blue Chip | 2% |
| ETH/WONE | Blue Chip | 4% |
| Farm | Classification | Emissions Weight |
|---|---|---|
| USDC/WONE | Stable | 9% |
| USDC/HRMS | Stable | 10% |
| USDC/1DAI | Stable | 2% |
We have quite a few major partnerships coming, so these farms and their emissions weight are subject to change. Up to date information will always be found in our front end interface.