Liquidity Farming FAQ

What is Liquidity Farming?
Farming is the process of a user providing liquidity in a Uniswap pool, receiving UNI-V2 LP tokens, and then locking those tokens in a different contract for further compounding $SARCO rewards. Here are the steps:
  1. 1.
    The user becomes a liquidity provider by locking both $SARCO and ETH in the Uniswap pool here:
  2. 2.
    In exchange for providing this liquidity the user will receive UNI-V2 LP Tokens, these ERC20 tokens are specific to the pool, currently the only pool for $SARCO is the SARCO/ETH pair. These tokens earn fees from the trading volume in the pool. More info on how Uniswap works here:
  3. 3.
    Once the user has the $SARCO/ETH UNI-V2 LP tokens, they can approve and deposit them into the app/. The purpose of the farming app is to incentivize liquidity providers to lock up their $SARCO and ETH and provide a deeper market. In essence the projects is giving away $SARCO tokens via DEX rather than paying for CEX listing fees.
  4. 4.
    The Farming contract distributes 2.5m $SARCO ERC20 tokens linearly over the course of one year in proportion to how many SARCO/ETH UNI-V2 LP tokens are in the pool. This means the fewer tokens in the pool, the more rewards each token will receive and vice versa.
Where can I find the Uniswap pool metrics?
DexTools has a great dashboard: for the overall pool, and has all of the metrics associated with the Farming rewards.
What is the APY of the Sarcophagus Liquidity Farming?
This is constantly variable based on the number of $SARCO/ETH UNI-V2 LP tokens in the pool. The fewer tokens locked in the contract, the more each token will earn per second.
How long are the LP tokens locked in the Farming app?
Tokens are never locked in the contract, they can be withdrawn at any time. When the LP tokens are withdrawn, all $SARCO rewards are also distributed.
Why do I have to approve LP tokens before locking them in the Farming contract?
All ERC20 tokens require approval to be used on a new contract, sadly we can't do anything about this. There are two actions in staking for Farming: First approve the LP tokens, then deposit them. This will be two separate MetaMask transactions.
How long does this incentive last?
For exactly one year after launch.
How is Liquidity Farming different from Liquidity Mining?
Mining: The user locks up stablecoins and earns $SARCO tokens directly. The mining contract will only accept USDC, USDT, and DAI. When a stablecoin is locked the user is rewarded with $SARCO in direct proportion to their share of the pool. Ex: If the user has $100k of the total $500k in the pool, and the pool is emitting 0.031710 $SARCO/second, the user will receive (0.031710 *0.2) = 0.006342 $SARCO per second they stay in the pool.
Farming: The user locks up SARCO/ETH UNI-V2 LP tokens that they received after providing both $SARCO and ETH to the Uniswap pool. These LP tokens are then rewarded proportionally to their fraction of the total staked tokens per second. All emissions are linear and proportionate to locked pool share.