👨🌾Farms
Provide LOW-CRO LP Token & SLOW-CRO LP Token to farm SLOW Rewards.
What are liquidity pools (LP)?
Liquidity pools are essentially pools of tokens that are locked by smart contract. The main purpose of these pools are to help provide liquidity and facilitate trading on exchanges. They do this by giving users of the exchange a means to buy and sell.
As such, liquidity pools are used by Automated Market Markers (AMM) to minimize drastic price changes (volatility) on crypto exchanges. This characteristic makes liquidity pools ideal for new coins or tokens that do not have a large user base.
Please refer to How to Earn SLOW for more information.
Generally speaking, what is the easiest flow to follow for compounding rewards?
If LOW is OVER the peg (1.01 TWAP):
Buy LOW and pair it with CRO to provide liquidity (LOW-CRO LP) to earn SLOW Rewards
Divide the earned SLOW into 2 parts: I. Sell 50% of earned SLOW for CRO and provide SLOW-CRO LP in the Farms Page to earn more SLOW rewards. II. Stake the 50% of earned SLOW into Boardroom to earn LOW Rewards.
Sell 50% of earned LOW from Boardroom for CRO and compound it back into the LOW-CRO LP for SLOW Rewards.
Repeat step 2 and 3 and profit!
Rationale:
To provide stability for both the platform and your underlying investment.
If LOW is UNDER the peg (0.99 TWAP):
Buy or use the farmed LOW in Boardroom and exchange it for BLOW in Bonds Page.
If you are providing LP (LOW/SLOW-CRO LP), burn the LP and exchange both tokens (LOW/SLOW & CRO) for BLOW.
Sell BLOW for LOW at a premium rate once LOW is back above the peg.
Rationale:
Help to bring LOW back above the peg so that Boardroom can resume printing LOW.
Higher TVL in the pool = Higher APR?
No, the higher the TVL in the pool, the lower the APR will be as there are more people sharing the same piece of the pie.
BUT, the higher the price of the rewards - SLOW (the pie), the higher the APR (better quality of pie) will be.
In other words, although the same rewards are diluted across more investors, if those rewards have a higher dollar value because of the increase in TVL, then it can actually lead to a higher APR as well.
APR in Boardroom is higher than in the Farms for LOW-CRO LP. Why would I not just invest everything in Boardroom?
Not Comparable due to different Rewards given. Boardroom is printing LOW Rewards, LOW-CRO LP is giving SLOW Rewards.
The APR shown in the Farms is linear and it prints 24/7 regardless of LOW's relation to the peg. Whereas, Boardroom prints ONLY when LOW's TWAP is above 1.1 (above the peg). Therefore, it may not always be that an investor gets a higher return from Boardroom than from the LOW-CRO LP Pool.
Note:
LOW follows the price of CRO, LOW-CRO LP is akin to holding CRO in your wallet, except with the bonus of a high farming APRs on top of it. In other words, if you're bullish on CRO's price action, the LOW-CRO LP is a way of holding exposure to that single asset while also reaping high APRs.
How to compound the LP?
Deposit your LP tokens in Farms on Lo-fi.
Harvest SLOW that you’ve earned every set amount of minutes.
Sell a portion of rewarded SLOW and use the remaining proceeds mint more LOW-CRO or SLOW-CRO LP tokens on MMF.
Deposit those LP tokens back into Lo-fi to grow your allocation.
Note:
Both LOW-CRO LP and SLOW-CRO LP pools pay rewards in SLOW.
If you’re in the SLOW-CRO LP, 50% of your SLOW rewards are sold for CRO each time for compounding.
If you’re in the LOW-CRO LP, 100% of your reward is sold and used to purchase 50% LOW and 50% CRO for compounding (create buy pressure on LOW▶️increase in LOW demand▶️increase in LOW price).
Why is ‘at-peg’ (TWAP between 1.00 and 1.01) the best time to provide liquidity?
When LOW is pegged or close to being pegged to 1 LOW : 1 CRO, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss if one of the tokens went up in value and the other did not.
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