Yield farming
DeFi strategy where a liquidity provider or depositor earns extra jetton rewards on top of the base pool fee or lending rate.
Aliases: yield farm, defi farming
Yield farming is the practice of stacking DeFi yields by combining a base rate (pool fees or lending interest) with extra token emissions. The simplest case: deposit TON and USDT into a STON.fi LP pool — you get a share of swap fees; if the protocol also distributes STON tokens to LPs, that bonus emission is the “farming” part.
Sources of yield
- Pool fees. The base layer: every swap pays 0.2–0.3% which is split across LPs by share. Depends on trading volume.
- Token emissions. The protocol mints its own token and pays LPs to attract liquidity. Early-stage rates are inflated and decay over time.
- LP-token staking. Some protocols let you stake the LP token into a separate farm contract for an additional reward.
- Boosters. Locking protocol tokens (ve-tokenomics) multiplies the farming reward.
Typical risk profile
- Impermanent loss on volatile pairs often exceeds the farming reward over time.
- Emission tokens depreciate as supply unlocks — a headline 200% APY can become a real 30% measured in TON or USDT.
- Smart-contract risk stacks: LP contract + farm contract + sometimes a vault strategy on top.
- Rug pulls on anonymous pools with absurd APYs are common.
What to check
Realistic farming yields on TON in 2026 sit around 10–30% APR on deep TON/jetton pools, with up to 50–100% APR on fresh pairs. Anything dramatically higher with no clear source deserves a hard look at the audit and emission schedule before any commitment.