Farming

Farming puts your log tokens and $CHOP into the log's pool and stakes the liquidity so it can receive the farmer share of $CHOP funded by fees.

What you earn#

After the log-token burn and any partner share, the remaining fee value is swapped for $CHOP in that log's pool. 20% of that $CHOP is burned and farmers share the other 80%. See Fees and where they go for the split.

How much $CHOP you need#

Liquidity goes in at the pool's current price, so the app calculates the $CHOP to match your log tokens. Anything that doesn't fit is refunded in the same transaction.

Slippage#

The default is 1%. If the pool price moves more than that before your transaction lands, it fails and nothing moves. You can choose 0.5%, 1% or 2%.

Impermanent loss#

A pool rebalances as prices move: it sells the side that's rising and buys the side that's falling. If the log token's price moves a lot, you can end up with less value than if you'd just held. Both sides of this pool move, so impermanent loss can be larger than in a stablecoin pool. Fees offset it, but they don't always cover it.

Example: you add 1 chETH and the same value in $CHOP. As chETH and $CHOP move, the pool continually rebalances your share. Holding the two tokens outside the pool can be worth more than the rebalanced position. That difference is impermanent loss. If the relative price returns to where you started, it disappears.

Your $CHOP exposure#

Part of your position and all your rewards are in $CHOP. If $CHOP's price falls, the value of both falls with it.

If nobody has staked liquidity in a log, 100% of that log's rewards are burned until farming begins.

Stop farming#

Stop farming unstakes your liquidity and removes it in one transaction. You get back log tokens and $CHOP, and any rewards you've earned are paid out automatically. There's no lockup and no fee beyond gas.