Liquidity Farm (Yield Farming)
Last updated
Last updated
Stake LP tokens into our farms to earn the $KNIGHT token.
At KnightSwap, our farms & trading fees are the incentive for users to provide liquidity for their favorite BNB Chain projects. The yield from farms are paid out in $KNIGHT, while trading fees are paid out in the LP provided.
At KnightSwap, one of our core focuses is increasing . TVL increases when more liquidity is provided on a DEX, and in turn allows users to trade more freely and safely.
As an investor, by providing liquidity for your favorite project, you will also help to reduce the volatility in price. This ensures a more consistent return on your investment in the long term.
By using our farms, users can stake their LP tokens after providing liquidity to earn $KNIGHT tokens on top of trading fees through our platform. These $KNIGHT tokens will always have buying power within our DEX and can be used to obtain more $KNIGHT tokens through the Knight Pool or our partner tokens through .
Because of the nature of DeFi providing LP does not come without some risks. If you’re considering supplying liquidity to one of our liquidity pools in order to farm, it’s important to understand the effects of impermanent loss. For a great guide on impermanent loss, check out or this .
Check out our guide from Merlin, , on how to get started.