How to Participate in Yield Farming with SushiSwap (SUSHI)

Learn how to use SushiSwap (SUSHI) to participate in Yield Farming

SushiSwap functions as both an automated market maker and a decentralized exchange (DEX). This means that smart contracts—mathematical operations and procedures on the blockchain—run trading instead of a central authority managing deals. The platform is completely decentralized as it is run by the community and has its own governing body.

It supports several Ethereum-based blockchains, including Polygon, the Ethereum  mainnet, and numerous more. SushiSwap is a fully functional Decentralized Finance (Defi) platform with four primary product branches that are run through their liquidity pools:

SushiSwap is a decentralized exchange. One cryptocurrency token for another can be exchanged here.

Kanzi loan is a decentralized loan marketplace. You may lend and borrow tokens using it.

Instruments of Yield. By staking a token pair and receiving the exchange's native Sushi token as payment, they let you add liquidity to the market.

Staking at SushiBar. By turning Sushi tokens into xSushi, you may stake them and get incentives based on your ownership interest in the SushiBar.

Using the BOND/WETH liquidity pool as an example, this is a step-by-step guide on yield farming.

Give the BOND/WETH Pool Liquidity

Open the app on Sushi.com and link your wallet first. Next, select the token combination you want by going to the pool tab. Here is where you may select the value of each token; however, note that you must deposit a pair of equal value.

Give the transaction your approval.

You can choose "Confirm Supply" once the transaction has been accepted. Your BOND/WETH SLP tokens, which represent your portion of the BOND/WETH pool, will then be sent to you.

Take Part in the BOND/WETH Farm with Your SLP Tokens:

To find the farm of the token pair you want, click the farm tab. You can stake or unstake the relevant SLP tokens here. Before confirming the transaction, you must provide access to your SLP tokens. After that is finished, you ought to be able to watch your rewards—in this example, Sushi tokens—accrue in real time. Reward harvesting is possible at any moment. Here, the stakers will get a daily maximum of 21.31 Sushi tokens dispersed proportionately.

Gather Incentives and Use Them at the Sushi Bar

You may stake your Sushi tokens at the SushiBar to earn more yields when you've accumulated a specific quantity of rewards (I advise you to harvest just a set amount due to gas expenses).

The Operation of Yield Farming

To begin: On SushiSwap, there are essentially two primary methods for earning prizes, and they may be accumulated. A portion of the fees collected by SushiSwap are sent to liquidity providers that make the DeFi platform operational.

Liquidity providers get swap fees from SushiSwap at a rate of 0.25%. This means that a liquidity pool, such as ETH and BOND, will get 0.25% of the exchange costs for every two tokens that are staked in it. Next, in real time, you receive prizes in the form of Sushi Tokens, which are distributed based on your pool share. As a result, rewards depend on both the size of your pool investment and the market activity of that token pair.

The prospect of staking two yields is already apparent. Stake your tokens in a pool at parity to first provide a token pair liquidity. Subsequently, you will receive SLP (Sushi Liquidity Pool) tokens, which will represent your portion of the pool.

To receive prizes in Sushi tokens, stake them. Rewards will be visible to you in real time, and you can harvest them whenever you'd like. In addition to earning staking rewards from your yield farming endeavors, you may stake your Sushi rewards for xSushi on the second level.