Direwolf and Goldfarm.io
We have all been hearing about Direwolf’s partnership with Goldfarm.io and we have all had our questions. Well, question no more, for the DireWolfpack has your pack. Today we shall delve deeper into Direwolf’s partnership with Goldfarm and understand how the farming system works.
What is Goldfarm.io?
Gold farm is a cross-chain DeFi FaaS (Farming as a Service) protocol that allows users to deploy crypto and NFT farms on BSC and ETH with no code required! $GOLD is the primary currency for Goldfarm but is not exclusive!
1,000,000 $GOLD tokens will be minted and split between BSC and ETH blockchains. 500,000 $GOLD will be the max supply on each Blockchain.
How Does Goldfarm work?
In very simple terms, you deposit one token and earn another without any LP tokens being required. You can find out more about LP tokens here[1].
So if we were to visualize it, think of $Direwolf as the seed and $Gold and $FEG as the plants that grow for you to harvest.
How long will the Farm Last?
The farm is going to last for 3 months. If all goes well and we are live on Goldfarm.io on 23rd June 2021, then the farm will last till 23rd September 2021.
What is the Reward Pool and how are rewards created?
Rewards are created as the pool suppliers (creators) decide, details can be found below. They will set the amount of tokens in pool. However, fBNB (Binance Smart Chain) and fEHT (Ethereum smart chain) pool supplies come from the 1% entrance tax of all other farms. So the more people that enter goldfarm’s farms the more their reward pool grows. ERC-20 farms provide rewards for fETH pool and BSC farms provide rewards for fBNB. For $Direwolf’s case, the pool will be from the fETH pool.
The $FEG reward pool is around 1,000,000,000,000 $FEG tokens.
The $Gold reward pool is 800 $Gold Token.
The tokens are up for grabs and will be rewards for investing $Direwolf into the farm.
How will the actual farm work?
1. Install Metamask wallet in your browser or access goldfarm.io via DApp.
2. Connect Metamask with Goldfarm.io platform.
3. Go to farm. Ensure you have $Direwolf in your wallet.
4. Find the Farm you want to enter (either $Gold or $FEG) and enter the amount of $Direwolf you want to deposit.
5. Click “Approve” button in pool.
6. Confirm transaction in Metamask. This approves you to the farm.
7. Next, type in the token amount you want to farm again.
8. Click “Deposit” button in pool. This is important, the first confirmation acts as a verification, and the second deposit enters you into the farm.
9. Confirm the transaction in Metamask.
10. Now you can see your farmed tokens. (Check that you can see a number besides “Your farmed balance”)
What are the gas fees for transactions on Goldfarm?
Goldfarm.io has a standard 1% tax fee upon entering a farm and $Direwolf has it’s 2% burn fee enshrined in its smart contract.
So if you were to deposit 1000 $Direwolf tokens. 20 tokens will be Direwolf’s fee leaving you with 980, and another 9.8 for Goldfarm. Leaving you with 970.2 tokens being deposited into the farm.
APY Explainer
For simplicity’s sake and to explain how the farming works. Attached below is a diagram. So for a farm that is lasting 10 days with a $100 as reward. The daily reward equals to $10. With the example that we are running, 3 people (A with 10 tokens, and (B and C) with 5 tokens) have chosen to farm for the 10 day period.
Over the 10 day period, each farmer will get a return proportional to their investment. In our example, person A has invested 50% of the total farmed tokens, and investors B and C have invested 25% each. So person A will receive $5 as their daily reward, and investors B and C will receive $2.5.
The rate of reward is proportional to the investment put in. The more the farmers, the greater the split of the daily reward.
References
[1] https://yieldbank.medium.com/automated-market-makers-liquidity-pools-and-lp-tokens-101-a50a0a99f89c
