RobiniaSwap: Farm VS Pool - Difference in Rewards?
https://robiniaswap.com
When RobiniaSwap went live the other day I put the same amount of money into their Farm and Pool, specifically, RBS-BNB LP farm and RBS pool.
All the APR were crazy high so I couldn't decide where to invent money into so I split my budget in half and put equal amount of money into Farm and Pool.
RBS-BNB LP Farm
LP farming means that you provide 2 tokens, RBS token and BNB token, into a liquidity pool so that when people swap tokens, RBS <-> BNB, they have enough liquidity and they can exchange tokens.
When you provide your tokens to liquidity pool you can collect % of transaction fees and it’s native token, RBS. This is how farming works.
But unlike staking, getting into a liquidity pool and provide your liquidity is a little bit complicated and need more steps because you need to prepare two tokens, RBS and BNB, that are equal amount and then add both of them into the liquidity pool.
For example, if you have $100 budget and want to put that money into liquidity pool, you need to have $50 worth of RBS and BNB each.
Normally people don’t have equal amount of different tokens ready to go, you would need to swap tokens so there is a lot more steps involved and gas fees than just simply staking a token.
I have earned 174 RBS in 3 days.
RBS Pool
Pooling is basically same as staking a token, in this case, staking RBS token. You just provide the token into a pool and get rewarded by doing so.
This process is a lot simpler than farming.
I have earned only 23 RBS from this pool though... maybe I should compound that RBS reward so that I can squeeze a little more out of this pool?
Harvest vs Compound
Harvest is to collect earned token, RBS, and send to your wallet. So that you can sell it, swap it, or hodl it. You can do whatever you want with it since token is in your wallet.
Compound is to collect earned token and put it back into the pool instead of sending it to your wallet. WHY? If you compound it, your staking token amount will increase and the RBS reward will also increase.
I put the same amount of money into farming and pooling without knowing which one was better but the difference is pretty significant 😲
I wish I knew this beforehand so that I would have put all my money into farming.
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Hi @tomoyan
Thank you for sharing your experience at RobiniaSwap, I liked the way you explained the details.
Wished regards.
Thank you :)
Dear @tomoyan
Finally, I've found some time to catch up with reading previously bookmarked publications.
I've never been farming before and doing it (via RobiniaSwap) is my first exposure to such an idea. However, I've learned that farming may be quite risky.
Did you hear about IMPERMANENT LOSS? I just bumped into this topic a while ago and Im still trying to wrap my head around it.
Cheers, Piotr