Farming

• Nine percent of all Seasonal Tokens mined are donated to the Farms.
• There are two farms, one in Ethereum network and another in Polygon network, Each farm receives 4.5% of all mined tokens.
• The 4.5% is then distributed among the four Liquidity Pools, but not in the same proportion. It is arranged in such a way that it complements the Mining supply, see Farming Rewards section below.
• Finally, farmers receive rewards in proportion to the percentage of liquidity they have on each farm.

Which Token is the Most Profitable to Farm? (UPDATED JAN 22 2024)

Use the annual Percent Return on Investment as an indicator of which of the farms is the most profitable at the time of the update. Not as an indicator of future profits.

The numbers will vary if:

• The number of tokens in the liquidity pools changes. (This happens when a farmer adds or retires liquidity from the farm)
• The Fraction of Farming Rewards given to each pool changes. (This happens every 9 months and correlates with mining supply)

Since the yearly ROI is a percent of the total Matic/ETH invested, it is not dependent on the dollar price of Matic or Ether. In other words: This ROI is given on Matic or ETH, and it is not calculated as a return in dollars.

For example, if you invested 10 Matic in the Polygon Spring Liquidity Pool, and the annual ROI is 40%, it means that in one year your 10 Matic will turn into 14 Matic.

Warning: Use this ROI only to decide which token is more profitable to farm at the given date of the update. It is not guaranteed that you will get this return on investment over a year, because the numbers vary with the above mentioned factors. 

Polygon Farm

Projected Anual Return on Investment in Polygon Farms

Spring	Summer	Autumn	Winter
40.7%	63.9%	22.7%	38%

Ethereum Farm

Projected Anual Return on Investment in Ethereum Farms

Spring	Summer	Autumn	Winter
9.63%	15.29%	8.86%	11.11%

How to create a liquidity position and deposit it into the farm: Farming Tutorial on Reddit Adding a liquidity position in the farm is far more expensive in the Ethereum network than in Polygon.

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ROI Calculation Explained

In the next section, we will dive into the details of how to compute the above ROI.

1. First we calculate how many tokens are mined every day
2. Then take 4.5% of that for one farm
3. Then distribute those tokens among the 4 liquidity pools
4. Then multiply by the fraction of the total liquidity we have
5. Divide by the size of our liquidity position to obtain a percentage ROI

It is very important to notice that the tokens are not distributed equally among the four liquidity pools. Some receive more tokens than others. It is arranged in such a way that the farming demand complements the mining supply contributing to the relative price oscillations.

1. Tokens mined per day

There are on average 144 mining rewards per day on each token mining pool. So the total number of tokens mined is 144 times the number of tokens per reward.

Mining Supply

Month	Year	Spring	Summer	Autumn	Winter
September	2021	168	140	120	105
June	2022	84	140	120	105
March	2023	84	70	120	105
December	2023	84	70	60	105
September	2024	84	70	60	52.5

Therefore, at the time of this writing, there are 144*84 Spring, 144*70 Summer, 144*60 Autumn, and 144*105 Winter mined every day.

Fraction of Tokens donated to the Farm

Multiply the above number of tokens mined per day by 4.5/100 to obtain the number of tokens of each type donated to the ETH, or Polygon farm.

Distribution of Tokens among the 4 Liquidity Pools

To contribute to the relative price oscillations, the farming rewards are organized in such a way that the demand for tokens for farming complements the scarcity produced by the mining supply. Four months after the halving of the mining supply of the token produced at the fastest rate, the farming rewards for that token increase.

The idea here is that the token whose mining supply was cut in half will start rising in price relative to the other tokens, and it makes sense to trade it for cheaper tokens. To motivate users to keep them in the liquidity pools the reward increases to compensate for the possible loss of opportunity in trading the tokens for cheaper tokens.

Farming Rewards (Fraction)

Month	Year	Spring	Summer	Autumn	Winter
Initially	2021	0.19	0.23	0.27	0.31
October	2022	0.32	0.19	0.23	0.26
July	2023	0.27	0.32	0.19	0.22
April	2024	0.23	0.27	0.32	0.18
January	2025	0.19	0.23	0.27	0.31

Therefore, (at the time of this writing) from the 144*84*4.5/100 Spring tokens donated to the farm, 27% will go to the Spring liquidity pool. 32% will go to the Summer liquidity pool. 19% for Autumn pool and 22% for the Winter pool.

And similarly for the Summer, Autumn, and Winter tokens donated to the farm. They will be distributed in the same proportion among the four liquidity pools.

Example:

If you have a Spring Liquidity Position in the Polygon farm, you will receive rewards in the four tokens.

The amount of Spring per day received by the Spring Liquidity Pool is:

• 144 rewards per day (on average) times the number of Spring tokens on each reward (you can see this on the Mining Page)*(4.5/100)*(0.27)

Where 0.27 is the fraction of total farming rewards given to the Spring Liquidity Pool. (See the table below)

• And finally, to obtain your share of Spring tokens you have to multiply the above result by the fraction of liquidity you provided. You can obtain this number by taking the amount of Matic in your Liquidity Position and dividing it by the total amount of Matic in the Liquidity Pool.

To obtain all rewards you have to add the Summer, Autumn, and Winter rewards calculated similarly.

• The above annual ROI is calculated by adding the Matic value of the Spring, Summer, Autumn, and Winter rewards times 365

• The Percent annual ROI is calculated by taking the above result for the annual ROI and dividing it by the amount of Matic in your Liquidity Position times 100

Farming Rewards Correlate with Mining Supply

The 9% donation to the farm is distributed among the 4 liquidity pools in such a way that complements the changes in mining supply, adding a rotating demand that acts together with the mining supply to produce the oscillations in the relative price of the tokens.

Four months after the mining supply of a token is cut in half, the farming reward for that token is increased, creating a combination of reduced supply and increased demand helping the price oscillations.

Number of Tokens per Reward

Every ten minutes on average a miner finds a solution to the proof of work challenge and receives a reward in tokens. There are 144 rewards per day.

Mining Supply

Month	Year	Spring	Summer	Autumn	Winter
September	2021	168	140	120	105
June	2022	84	140	120	105
March	2023	84	70	120	105
December	2023	84	70	60	105
September	2024	84	70	60	52.5

Farming Rewards

Nine percent of the tokens mined are donated to the farms.

For example, in June 2022 the mining supply of Spring was cut in half, four months later, on October 2022 the farming rewards changed and Spring received more rewards than the other 3 tokens.

In March 2023 the Summer mining supply was cut in half, four months later, in July 2023 the farming rewards changed and Summer receives more rewards than the other 3 tokens. In December 2023 Autumn mining supply is cut in half, and on April 2024 the farming rewards will give Autumn the larger fraction of rewards.

Farming Rewards (Fraction)

Month	Year	Spring	Summer	Autumn	Winter
Initially	2021	0.19	0.23	0.27	0.31
October	2022	0.32	0.19	0.23	0.26
July	2023	0.27	0.32	0.19	0.22
April	2024	0.23	0.27	0.32	0.18
January	2025	0.19	0.23	0.27	0.31

Profitability of Farming

Number of Tokens donated to the Farm

Each farm receives 4.5% of the mined tokens, therefore the number of tokens donated every day is:

(144 rewards per day)*(Number of tokens per reward)*(4.5/100)

For example, at the time of this writing the number of Spring Tokens per reward is 84, therefore the number of tokens donated per day to each farm is: 544.32 Spring

Token distribution among the four Liquidity Pools

Those 544.32 Spring tokens are distributed among the four liquidity pools in the proportion given by the Farming Rewards (Fraction) table above. At the time of this writing the fraction of tokens distributed to each Liquidity Pool is: (0.27,0.32,0.19,0.22) for Spring, Summer, Autumn and Winter Liquidity Pools respectively.

Therefore the 544.32 Spring tokens will be distributed in this way:

146.97 tokens to the Spring liquidity pool. 174.18 tokens to the Summer liquidity pool. 103.42 tokens to the Autumn liquidity pool. 119.75 tokens to the Winter liquidity pool.

Token distribution among the Liquidity Providers

Finally, the last factor in the calculation of the token rewards is the fraction of the tokens each liquidity provider receives. The tokens are distributed according to the fraction of liquidity provided. A person holding 10% of the liquidity will receive 10% of the rewarded tokens.

You obtain this fraction by taking the amount of Matic or ETH in your liquidity position, divided by the total amount of Matic or ETH in the Liquidity Pool.

Your Liquidity Position in the Spring liquidity pool receives also Summer, Autumn, and Winter. So to calculate the total rewards per day we have to add the other rewards.