Yield Farming

Paragon Farms allow users to earn rewards by providing liquidity and staking LP tokens. Farming combines trading activity, emissions, and execution-based incentives into a unified reward system.

What You Earn

When farming on Paragon, rewards come from three sources:

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1. LP Trading Fees

Every swap generates a fee:

• 0.20% base fee

• 0.17% → LPs

• 0.03% → Protocol (POL / treasury)

👉 You earn:

• proportional to your share of the pool

• continuously as trades occur

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2. Farm Rewards (XPGN Emissions)

Paragon distributes XPGN emissions to active farms.

Key points:

• emissions are focused on core pools (e.g. XPGN / USDT)

• rewards are distributed to liquidity providers

• emission direction is controlled by veXPGN governance

📌 See Tokenomics for full emission details

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3. Execution-Based Rewards

When trades are routed through Paragon’s execution layer, pools used in routing may receive additional rewards.

👉 Key points:

• rewards depend on actual usage

• not all trades generate additional rewards

• varies based on execution conditions

📌 See Surplus & Rebates for full mechanics

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The Paragon Yield Model

Paragon separates value into three layers:

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🌱 Emissions (Growth)

• XPGN distributed to farms

• incentivizes liquidity and participation

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💸 Fees (Value Capture)

• protocol share of trading fees

• used for buybacks and Protocol-Owned Liquidity

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⚡ Execution (Efficiency)

• improved routing can generate additional value

• shared across participants

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👉 Result:

A system combining growth, sustainability, and activity-driven rewards.

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Example (Simplified)

You provide liquidity to XPGN / USDT.

You may earn:

• LP trading fees

• XPGN farm rewards

• additional rewards when your pool is used in execution

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⚠️ Impermanent Loss (IL)

Liquidity providers may experience Impermanent Loss:

• caused by price divergence between tokens

• may reduce value compared to holding assets separately

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Offset by:

• trading fees

• emissions

• additional rewards (when applicable)

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How Rewards Are Paid

LP Fees

• accumulate in the pool

• realized when liquidity is removed

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XPGN Emissions

• distributed continuously

• claimable via the Farms interface

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Execution-Based Rewards

• generated based on routing usage

• claimable depending on implementation

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veXPGN (Governance Layer)

Locking XPGN into veXPGN allows users to:

• influence emissions

• participate in governance

• align with long-term protocol growth

📌 See veXPGN (Locking & Power) for details

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Current Parameters

• base fee: 0.20%

• LP share: 0.17%

• protocol share: 0.03%

• emissions: focused on core pools

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⚠️ Risks

• Impermanent Loss

• variable APR (depends on volume and emissions)

• emissions may change via governance

• execution-based rewards depend on usage

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FAQ

Where do emissions go? → Core farms and ecosystem incentives

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Are fees distributed as rewards? → LPs earn trading fees; protocol share is used for treasury functions

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Can I unstake anytime? → Yes, unless a specific pool defines additional conditions

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Summary

Paragon Farming combines:

• trading fees

• emissions

• execution-based incentives

It is designed to align rewards with actual protocol activity rather than relying solely on inflation.