How to earn Farming rewards
A step-by-step guide to participating in Distrix's Farming Pool and earning rewards.
Getting Started with Farming Provision
Key requirements for participating in the Farming Pool
Distrix Compatible Wallet
You'll need a wallet that supports Distrix Chain operations to manage your liquidity.
DSTX Tokens
You'll need to hold DSTX tokens along with a paired cryptocurrency (like USDT, ETH, etc.).
Gas for Transactions
Ensure you have enough DSTX to cover gas fees for adding and removing liquidity.
Step-by-Step Guide
How to provide liquidity and start earning farming rewards
Connect Your Wallet
Connect your DSTX-compatible wallet to the Distrix Portal by clicking the "Connect Wallet" button in the top-right corner.
Provide Liquidity to Farming-Allowed Pairs
First, you need to provide liquidity to one of the farming-allowed pairs on the Distrix DEX:
- Go to the DEX section in the Distrix Portal
- Select Liquidity and then Add Liquidity
- Choose a farming-allowed pair (such as DSTX/USDT or DSTX/ETH)
- Enter the amount of tokens you want to provide (both tokens are required in the correct ratio)
- Approve and confirm the transaction in your wallet
Receive LP NFT
After providing liquidity, you'll receive a Liquidity Provider (LP) NFT that represents your share of the pool.
The Distrix DEX uses NFTs to represent your liquidity position rather than traditional LP tokens. These NFTs contain all the details of your liquidity provision.
Navigate to the Farming Section
In the Distrix Portal, go to the Network menu and select Farming.
Stake Your LP NFT
In the Farming section:
- Find the farming pool that corresponds to your LP pair
- Click on Stake
- Select your LP NFT that you want to stake
- Confirm the staking transaction in your wallet
While your LP NFT is staked, you cannot remove your liquidity from the pool until you unstake it first.
Start Earning Rewards
Once your LP NFT is staked, you'll automatically start earning farming rewards (0.30 DSTX per block allocated to the Farming Pool, distributed proportionally to all farmers).
Claim Your Rewards
To harvest your farming rewards:
- Return to the Farming section in the Network menu
- Find your staked position
- Click Claim Rewards
- Confirm the transaction in your wallet
Your rewards will be transferred to your wallet as DSTX tokens.
Risks and Considerations
Important factors to understand before providing liquidity
Impermanent Loss
If the price ratio of the assets in your liquidity pool changes significantly, you may experience impermanent loss. This happens when the value of your assets in the pool becomes less than if you had simply held them.
Lock-Up Period
Some liquidity pools may have a lock-up period during which you cannot withdraw your assets without penalties. Always check the terms before providing liquidity.
Smart Contract Risk
As with any DeFi activity, there's always a risk associated with the smart contracts that manage the liquidity pools. Use established pools with audited contracts.
Reward Fluctuations
As more liquidity providers join a pool, your share of the rewards will decrease. Additionally, the diminishing reward model means total rewards decrease by 12.5% each year.