🍀 Yield Farming in MMF V3 Hi all, we understand some of you have queries regarding how yield farming/APR works in MMF V3. We've written a simple guide. In MMF V3, you will get to earn MMF + LP fees. As a general rule of thumb, 2 things affect the amount of APR you earn: - Amount of liquidity/TVL provided - The range you select The amount of liquidity provided is something everyone is familiar with, and we shall not dwell much on it. However, the range selected by you when yield farming, has the capability to greatly affect the amount of APR you earn. A $10k USDC WETH-USDC LP position has the capability to earn up to 600% APR, or as low as 43% APR (based on current emissions). Maximizing emission + LP rewards Generally, the smaller the range provided, the higher the amount of emission and LP rewards earned. Yes. The amount of emission is also affected by the amount of range that you have selected. The lower the range selected, the higher your IL would be. However, the intention of higher LP and emission rewards is intended to offset that. This is why you need to play around with the ranges to understand the amount of APR you are potentially getting. As an example, we have attached an image of a WBTC-USDC yield farming position that earns up to 547% APR. The premise for our settings is a range of $16000 - $34000. Our reason for selecting this range, is because we believe that BTC is likely to trade rangebound within this range for a period of time. While we may experience higher IL towards the upper and lower bounds of prices, we are not worried as we will only ever one day break our LP when prices of BTC one day get back to the current price of ~$31000 as it is today. With that in mind, we hope you can form your own hypothesis-es surrounding your yield farming positions, and to be able to enjoy a high yielding position! Like, Comment & RT here