Current Farming vs Legacy Farming
Crescent’s farming module is providing farming functionality that provides farming rewards to farmers. Each farmer to the pool having the farming plan(s) can get the farming rewards.
One main difference between Farming v1 and Farming v2 is the period of the rewards distribution.
In Farming v1, the farming rewards is distributed at 00:00 UTC everyday to the farmer that has farmed for the entire previous day. In this case, if the farmer changes the position that the farmer provides the liquidity for, the farmer would lose the farming rewards for a day. This makes the farmers hesitate to change the position for liquidity.
In Farming v2, the farming rewards are distributed at every block to the farmers. Thanks to this feature, the farmers can dynamically choose the position for their liquidity to get more rewards.
Another main difference is the farming plan for a given pair.
In Farming v1, the farming plan is given to a specific range. Therefore, each range can have separate fixed amount of the rewards regardless of its liquidity. For example, a ranged position with price range of [0.99, 1.01] has the amplification factor of 200, i.e., the liquidity of the ranged position is 200 times of the basic position with the same TVL. Even in this case, if the farming rewards to the both ranges are the same, then the farmers of the ranged position and the basic position will get the same amount of rewards with the same TVL. This means, there is not so much motivation to provide liquidity to the ranged position.
In Farming v2, the farming plan can be given to a pool, which has multiple positions. For example, bCRE/CRE pool has multiple positions with different ranges. In this case, a farming plan can be given to bCRE/CRE pool, not a specific range. Then, the farming rewards automatically distributed according to the liquidity of each position. With this feature, the farmer providing its liquidity to the ranged position will get more rewards compared to the farmer of basic position with same TVL.
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