Can someone give me a rough explanation for dummies how

lp farming works on yokaiswap? I was under the impression that you keep ckb-yok in the liquidity pool when you mint an lp token and then stake that token. How does it actually work 😵

The ratio of both pairs must always be in a 50/50 ratio. For example you put token A and Token B. The initial balance is 50/50. If token B rises in price, the farm is rebalanced to return to 50/50. In this example if you undo the LP you would have more A Tokens and less B Tokens than when you entered the farm. Therefore there is danger of impermanent loss

But I minted lp tokens from my provided liquidity. Does that transfer the liquidity into the lp token? So I the end I will be left with only the lp token to stake? I'm so confused 😅

No, you do not transfer capital from the farm. The money you receive is payment for a service, to provide liquidity. Thanks to that with each transfer you receive part of the fee as profit. If you see that your LP drops in dollars it is because the price of YOK and the price of CKB have dropped respect dollar. With the amount of YOK you earn and appear in harvest you can reinvest in the farm, swap to CKB, USDC, etc.

But on lp it says I have not provided any liquidity. I put in ckb-yok. Then minted lp token and staked it. I'm receiving yok on my lp token staking but under liquidity pool it's says "no liquidity provided" or similar

DM me if you’d like. I can explain with video/images

Thanks will come back to you after the movie 👍👍

Your better farming koi-yok right now

No problem. For now I will explain a basic overview. Alejandro has done a great job so I will just add onto it: Yokai swap essentially has 2 ways of earning 1.Pools 2.Farm Pools; are much more straight forward. You’re essentially putting one investment (YOK) into an interest pool and receiving passive income (YOK) under an APY (annual percentage yield) meaning it auto compounds. Simple stuff (the fiat value of your original investment is the main thing to keep an eye on; IE the price of YOK) Farms; a bit more complex. Ask yourself what your goal is. For most, it’s a route to accumulate more CKB, for others it’s as simple as a way to earn money. When your goal is figured out, the view on what to pay attention to becomes clearer; You are essentially splitting your investment in 2: half YOK, half CKB. Think of it this way; it’s the same concept as holding one coin, but now now there is risk involved because it is pegged to 2 coins. So ideally you want the values of each to move together to keep it straightforward. Now, just as before, you’re providing that investment to a pool of liquidity (money) in which you receive interest for. These are your “harvests.” Mind you, the farms use an APR (annual percentage return) meaning it does not auto compounding. They leave that up to you if you would like to do that yourself, you can. Now, impermanent loss can be a little complex. As I said before, you want both coins to move relatively the same. If the value of the coins gets far away from each other (one is going up while the other is going down) you can end up losing your originally invested CKB. But, I speak for my self when I say my goal is to earn more CKB. So when the price of YOK is rising, and CKB is staying flat or even going down, yes, the fiat value of your LP is decreasing, but that YOK you can harvest is now worth more to ultimately trade to more CKB. But for those wanting to simply earn fiat, they would have just been better off holding the one coin that performed better. This is why I asked you your goal. The goal is important to establish before hand. Lastly, it seems you were having trouble getting it set up. So again, DM me and I will send a short walk through video 👍🏻

@JP2444 Yokai swap has higher returns. Here is a basic breakdown.

Wow I appreciate the in depth description, thanks a lot sir! Part of why I was confused was that with other protocols things can run a bit different I guess. But now that's clear. I actually have a farm set up, so I think that's all I need to do for now besides the harvesting! I'm excited 😀

Not problem! Have fun 😄

Refering to the second last paragraph. When the YOK is on AutoYok pool and compounding automatically, should I remove the daily profits and convert them into CKB as a better savings/gains strategy?