Announcement: Algem Liquid Farming is here!

Soneium
1

Liquid Farming Release - Algem - FEB 2025 (1)
Liquid Farming Release - Algem - FEB 2025 (1)1200×700 142 KB

:champagne: After the long anticipated arrival Algem Liquid Farming is here!

This isn’t just another product; it’s a powerful tool that unlocks new opportunities and today, we’ll explain why along with key benefits. Just before we finish we’ll explain how you can start earning during the bootstrap phase from our first vaults right away, so let’s dive in!

:person_raising_hand: What is Liquid Farming?

Unlike traditional liquidity pools, where tokens are locked, Liquid Farming provides lfETH—liquid tokens that can be used in DeFi protocols, traded, or held until vault expiration to redeem ETH. It combines the best of both worlds: farming rewards and liquidity freedom.

:heavy_plus_sign: Can you give us an example of how it works?

Sure! Let’s take the WETH/yaySTONE pair on Velodrome as an example:

1. You deposit 1 ETH and approximately 1 yaySTONE into the vault.
2. The liquidity is sent to Velodrome.
3. You receive 1 lfETH, equivalent to your ETH deposit.
4. You will start earning trading fees from the WETH/yaySTONE pair plus ALGM incentives proportional to your share in the vault.
5. Use your lfETH, for example, by adding it to an ETH/lfETH pool for additional fees.
6. After vault expiration (or anytime before), you can withdraw your liquidity.

:key: Key Benefits of Liquid Farming:

• Adaptable solutions with zero locked funds! Instantly grab liquid lETH, perfect for trading or diving into DeFi strategies within the Soneium ecosystem.

• Reap diverse rewards: enjoy a slice of trading fees, ALGM incentives, and farming bonuses for every vault you leverage.

• Hedge like a pro! Sell lfETH at a discount if you anticipate an ETH price dip.

• Multiply your earnings: simply add lfETH to pools or hold onto it until expiration for lucrative returns.

:shopping: To make the Liquid Farming launch even more rewarding, we’ve prepared generous incentives to each vault for a total of four months for early participants:

• WETH/yaySTONE – 200,000 ALGM
• WETH/yayAgETH – 55,097 ALGM
• ETH/wstETH – 4,000 ALGM

Rewards are distributed daily (ERA) based on your liquidity share and the more you deposit, the more ALGM you earn.

:checkered_flag: Sounds great, but what now?

Go to Liquid Farming to get started:
https://lf.algem.io

Or check out the blog article for more information:
Liquid Farming is Here! – Algem Blog

Transforming Finance, Redefining Freedom

3 Likes
2

This is definitely a type of product to look forward to building at Soneium, congratulations on such a great project!

My question is, will there be ASTR support inside this app soon?

2 Likes
3

Hi @Juminstock thank you, much appreciated!

To answer your question, yes in the form of ETH/ASTR pairs.

2 Likes
4

@gl_r93
Great! Thanks for your prompt and accurate response. I’m glad to see that Algem is still thinking about integrations with Astar :smiling_face_with_sunglasses:

2 Likes
5

Thank you very much for the progress and update information during the past March. If the team is available, may I please ask about the current progress and how things are going? This way we might be able to support or promote it. =)

7

Hi @BoomBLB and thank you for your question,

We’ve launched the initial version of the vaults with safe pairs (i.e., minimal impermanent loss risk for users) like ETH/ETH LSTs and gathered a significant amount of user feedback and suggestions.

So far, we haven’t heavily promoted the product as we’ve focused on testing the contracts in real conditions and collecting feedback. It was difficult to fully replicate all edge cases in a testnet or dev environment, so this real-world testing phase was crucial.

As a result, we’ve developed an improved version of the vaults based on user insights. Testing is wrapping up in the coming weeks and the updated code should then be getting submitted for auditing.

Once the audit is completed, we’ll be ready to roll out new vault pairs and launch a large-scale marketing campaign.

1 Like
8

This is great news and a great contribution to DeFi in Astar and Soneium, users will be able to unlock their staking liquidity and keep generating rewards through Algem and various peers, congratulations guys.

1 Like
9

Thank you @Vangardem for your support and for leaving your comment, much appreciated.

1 Like