Yield farming in crypto refers to the performance of a particular action for a platform or entity that justifies paying out an annualized percentage yield (APY). Often, this effort entails adding liquidity to a network, and then staking liquidity provider tokens, or adding liquidity to a market for borrowing and lending. Projects incentivize this behavior when it enables them to function more efficiently. FantasticSwap has by and large the most effective system in DeFi for farming yield. This is in part because nearly every token on FantasticSwap is natively yield bearing, which enables FantasticSwap to function very efficiently. In FantasticSwap's case, adding liquidity to any branch of the platform allows the platform as a whole to be more efficient, and every type of market is available on FantasticSwap. It has its own thriving exchange (FantasticSwap), and it has staking derivatives (xFANTA). FantasticSwap is able to deliver a compounded yield farming experience by "stacking" these two yields in simple procedures.
Here is a description of the two types of yield:
Now that you know what the two forms of yield are, you can try to stack them yourself. Start small if you like, by finding a token pair that you want to hold, and using it to stack two types of yield on FantasticSwap. Usually, the pairs require EVMOS and a second token, but the following example can be any pair that’s on the Onsen menu, or the permanent menu: (1) Provide liquidity on FantasticSwap by entering a pool that is incentivized by FantasticSwap (https://app.fantasticswap.xyz/pool). (2) Deposit the liquidity token (LP) you received after supplying liquidity into a yield farm (https://app.fantasticswap.xyz/farm), and earn FANTA. (1) Stake your FANTA rewards for additional yield (https://app.fantasticswap.xyz/stake), and earn xFANTA.
Unstaking or adding LP tokens to a farm will automatically harvest any rewards you have available. A good way to save on gas.