Farm
Last updated
Last updated
AuroraSwap itself is simply a blockchain protocol which, by design, does not offer any resources for utilisation As such, in order to provide users easy access to $BRL and for the protocol to perform its core function as a DEX, users would need to be incentivised to play the role of liquidity providers and stake their digital asset pairs (e.g. ETH/$BRL) into the decentralised market making pools to provide the necessary liquidity for transactions. As compensation for opportunity costs, these liquidity providers which help to promote adoption of AuroraSwap by staking or including assets to selected liquidity pools (i.e. farms) in exchange for BRL-LP tokens would be rewarded with $BRL (i.e. "farming" on AuroraSwap), according to each user's relative contribution after various adjustment and correction parameters.
In Figure 1, a liquidity provider deposits supported BRL-LP tokens to the farm contract.
The farm contract emits 10 $BRL/block and the new farmer owns 100 out of 400 BRL-LP tokens in the farming contract. Therefore, the liquidity provider will be earning 2.5 $BRL tokens per block.
AuroraSwap's goal is to bring liquidity to Aurora, therefore we will prioritize supporting farming rewards for other protocol tokens that are building on Aurora. However, eventually supported farms and their emissions will be decided by governance.