You deposit two tokens into a pool—how can you also earn the project’s token?
Reward tokens mostly come from tokens newly minted by the project according to a schedule. The emission rate and total supply are generally set by the tokenomics model.
Key takeaway: When evaluating yield farming returns, factor in both impermanent loss and a potential drop in the reward token’s price. Looking only at the annualized yield shown on the page can easily lead you to overestimate returns.
$SUSHI is SushiSwap’s token. SushiSwap got its start in 2020 through liquidity mining.
Markets are always full of surprises, so decide in advance what you’ll do if your judgment turns out to be wrong.
Reward tokens mostly come from tokens newly minted by the project according to a schedule. The emission rate and total supply are generally set by the tokenomics model.
Key takeaway: When evaluating yield farming returns, factor in both impermanent loss and a potential drop in the reward token’s price. Looking only at the annualized yield shown on the page can easily lead you to overestimate returns.
$SUSHI is SushiSwap’s token. SushiSwap got its start in 2020 through liquidity mining.
Markets are always full of surprises, so decide in advance what you’ll do if your judgment turns out to be wrong.
