A decentralized exchange is only as healthy as its liquidity, and maintaining the long-term health of the SundaeSwap DEX is a top priority. Because the initial contributors to the protocol chose an AMM (Automated Market Maker) model, the DEX is able to use yield farming to incentivize and reward stability in its liquidity pools.

In order to participate in yield farming, liquidity MUST be provided to one of the following 4 pools:

  • SUNDAE/ADA 0.3%

  • LQ/ADA 0.3%

  • WMT/ADA 0.3%

  • CARDS/ADA 0.3%

These pools each have "Farming APR" underneath their names and appear at the top of the exchange's homepage.

A photo of the 4 pools available for yield farming on the SundaeSwap exchange

An easy way to check if you are providing liquidity to the correct pool is to check your liquidity positions and see if "Farming Available" appears underneath the pool name. You also should not own a large percentage of the pool. If you have provided a relatively small amount of liquidity (the current TVL of the SUNDAE/ADA 0.3% pool, for example, is about 60m ADA) and your pool share makes up a significant portion of the pool, that could be a red flag you are providing liquidity to the wrong liquidity pool.

An example of what

From here, you can stake your liquidity by clicking on "More" and "Stake LP Tokens"

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