How the Farming works

Covenants Farming

Ethereans love to farm. They do it all day and night—apes, penguins and wizards alike. But farming in DeFi is not always well-managed, and the hard-earned harvests of farmers are often at risk.

Covenants farming contracts allow us to farm safely and on our own terms. Anyone can host or participate in Farming setups that pool tokens across multiple AMMs at once.

The Basics

Covenants farming contracts have multi-AMM functionality and are designed to be used by anyone for a wide variety of purposes.

Hosting

Any DAO, individual wallet or customized smart contract can host a farming setup. You can even set it up to have no host at all. This flexible design makes it easy to set rules for distributing rewards (from a treasury or via minting) while preventing hosts from touching farmer tokens or manipulating rewards for positions, securing farmers from exploitation. Extension

A core part of farming contracts is the Extension. It holds the reward tokens for all of the contract’s setups, and is programmed with the logic for how rewards will be distributed—i.e, via transfer or mint. Reward tokens must be sent to it before a setup can commence, securing farmers from any potential threats from poorly or maliciously coded custom extensions.

Rewards

All setups reward farmers with one token. It is the centrepiece of the setup, around which the rest of the contract is customized. This simplifies managing the customizable extension for each setup’s reward method (Mint or Transfer) and makes it easy to calculate the total amount of the token being inflated via rewards; all anyone has to do is call the setup(s) using it as a reward and they will be provided with the relevant data.

Setups

Farming setups can be either Free or Locked.

All setups can be customized to automatically renew immediately after they end. However, this does not automatically renew old positions; new ones must be opened manually.

Free Farming

Duration

Block-based fixed periods. Farmers can stake / un-stake liquidity anytime.

Position Availability

Any amount of farmers can participate anytime in a free farming setup.

Rewards

Availability

Provided by the host and locked in a treasury extension before the setup commences. This guarantees that farmers will receive their rewards securely and without having to trust that the host will send them.

Distribution

Block-to-block among active farmers pro rata to the % of total liquidity each provides.

Redemption

Rewards can be redeemed anytime with no penalty.

Hosting

Hosts can alter the rewards per block anytime, change the renew times and disable the setup at any time. These does not apply retroactively.