Frequently asked questions

Farming FAQs:

1. What is the farming feature provided by Iotabee?

The farming feature provided by Iotabee is in collaboration with Soonaverse, a platform for creating and managing decentralized autonomous organizations (DAOs), NFTs, projects, companies, and markets, on the feeless infrastructure of the IOTA network. With this farming feature, you can stake your LP tokens earned from liquidity providing and earn extra rewards in return.

2. Who can participate in farming? Are there any conditions linked to this liquidity farming?

Anyone can participate in the farming, as long as they have the required tokens to provide liquidity to the pool. Then the LP tokens you have earned can be further invested in the staking to earn extra rewards.

There is only one condition associated with this particular liquidity farming: you will need to lock your LP tokens between 1 to 52 weeks and you can not unstake before the end of your selected staking period.

3. How are the rewards calculated？

We recommend you consult Soonaverse’s official channels for more information.

This Medium article also provided some more details on this regard.

Basically, the rewards are calculated based on each participant’s staking amount and staking period. The earlier you participate and the more tokens you stake, the higher the rewards will be. A multiplier also comes into effect when calculating staked value.

If one user locks their LP tokens for 2 weeks while another user locks theirs for 52 weeks, the user with a longer locking period will receive more SOON token rewards.

To calculate the multiplier, you follow this formula:

Y = MX + B

Y = Multiplier

M = 1 / (52-1)

X = weeks staked/locked

B = 2 - M * 52

52 is simply the maximum amount of weeks LP tokens can be staked/locked.

This is to say if a user stakes for 1 week, then they get a multiplier of 1. If a user stakes for 26 weeks, then they get a multiplier of 1.49020. And if a user stakes for the maximum 52 weeks, then they get a multiplier of 2.

A total amount of 8, 000,000 SOON Tokens will be distributed over a period of 156 weeks (3 years).

If we use the example above, and only those 2 users were staking during the first weekly distribution, the user who only staked for 1 week would receive XXX and the user who staked for 52 weeks would receive XXX.

Here are the formulas:

User 1 staked value: 10 * 1 = 10

User 2 staked value: 10 * 2 = 20

Total staked value: 10 + 20 = 30

User 1 proportion of the weekly distribution: 10 / 30 * 127,184.415786 = 42,394.805262

User 2 proportion of the weekly distribution: 20 / 30 * 127,184.415786 = 84,789.610524

4. How often do the rewards for farming get sent?

After you have staked the LP tokens, you will begin receiving the weekly SOON token rewards, which will appear in the “accrued locked SOON Tokens to claim” list as the rewards need to be vested for 1 year. Once they are unlocked, they will appear above the “Harvest” button, you can then claim and spend your rewards.