Farmix is a leveraged yield farming protocol built to operate within the TON ecosystem, allowing users to significantly increase the yields of their farms through the use of leverage.
How does Farmix work?
- Standard farming process (without Farmix protocol):
To start farming on a DEX, you need to:
- Exchange some of your TON for a stablecoin (e.g., USDT).
- Deposit the received amount into a liquidity pool.
- Send the liquidity to farming, earning rewards based on the size of your position.
- Margin farming with Farmix:
Instead of simply exchanging your TON and depositing them into a liquidity pool, you can use the Farmix protocol, which allows you to take a loan and increase the size of your position.
- You deposit 1000 TON as collateral (this is just an example; the collateral can be any amount).
- You choose the leverage size (e.g., 3x).
- Using leverage, you can increase the size of your farming position by 3 times. So, thanks to the borrowed funds, your actual position will be 3000 TON, rather than just 1000, as in the standard case.
- Benefits of Farmix:
- Increased yield: Leverage allows you to multiply your potential returns. For example, with 3x leverage, you will earn rewards as if you had invested 3000 TON instead of 1000.
- Flexibility: You can choose the leverage that fits your risk tolerance, from 1x up to the maximum 3x.
- Smart contracts: All management is handled through smart contracts, ensuring transparency and security of operations.
Thus, Farmix offers users the opportunity to boost the yield of their investments within the TON ecosystem through margin farming, providing a profitable alternative to traditional liquidity management methods.