Yield Farming
Paragon Farms let you earn extra rewards in XPGN by staking LP tokens—deepening liquidity while boosting your returns.
What you earn (now 3 streams)
When you stake LP tokens in a Paragon Farm, you still provide liquidity to the DEX. That means you can earn:
LP trading fees — your share of the AMM’s base fee
Base fee: 0.30% per swap
0.25% goes to LPs in the pool that executed the trade
0.05% goes to the Treasury Vault (protocol-owned liquidity)
Farm rewards (XPGN emissions) — extra incentives paid by the protocol
Allocated by gauges to active pools
May be boosted for lockers (stXPGN / veFlow), when enabled
Flow LP rebates (surplus sharing) — new with Paragon Flow
When Flow’s solver finds better execution than a trader’s
minOut, the surplus is split:60% → trader (cashback)
30% → LPs of the exact pools/hops used (this is your Flow rebate)
10% → stXPGN / veFlow lockers
This is on top of normal 0.25% LP fees
Surplus sharing is variable and depends on market conditions and solver quality. It’s paid only on trades settled through Flow (intents + batching).
Impermanent Loss (IL) at a glance
LP positions earn fees and rebates but can experience Impermanent Loss when the prices of the two tokens diverge.
IL is unrealized until you exit.
High fees, surplus rebates, and boosted emissions can offset IL over time.
Understand IL mechanics before you farm.
APR — how we show it
Total estimated APR = LP Fee APR + Farm Rewards APR + Flow Rebate APR (variable)
1) LP Fee APR (from 0.25% base fee)
Daily Fees to LPs=Pool 24h Volume×0.25%\text{Daily Fees to LPs} = \text{Pool 24h Volume} \times 0.25\%Daily Fees to LPs=Pool 24h Volume×0.25% Your Daily Fees=Daily Fees to LPs×Your Share of Pool\text{Your Daily Fees} = \text{Daily Fees to LPs} \times \text{Your Share of Pool}Your Daily Fees=Daily Fees to LPs×Your Share of Pool
Annualize and divide by your position value to get APR.
2) Farm Rewards APR (XPGN emissions)
Depends on:
Pool’s allocation weight (gauges)
Total XPGN emissions to farms
Total staked liquidity in that farm
Any boosts if you hold stXPGN / veFlow (when enabled)
3) Flow Rebate APR (variable)
On Flow-settled trades only:
Your Flow Rebate=(Surplus×30%)×Your Share of the LPs used\text{Your Flow Rebate} = \left( \text{Surplus} \times 30\% \right) \times \text{Your Share of the LPs used}Your Flow Rebate=(Surplus×30%)×Your Share of the LPs used
Annualized into APR based on realized surplus over time.
UI shows LP Fee APR + Farm Rewards APR always, and Flow Rebate APR where available (may be shown as a trailing/rolling figure).
Example (illustrative)
Pair: XPGN/USDT
Pool Liquidity: $50.0M
24h Volume: $12.0M
Your share of pool: 1.0%
LP Fee APR
Daily fees to LPs = $12.0M × 0.25% = $30,000
Your daily fees = $30,000 × 1.0% = $300
Annualized ≈ $300 × 365 = $109,500 → APR = $109,500 / ($50.0M × 1%) ≈ 21.9%
Farm Rewards APR
Depends on current XPGN emissions to this pool and total staked; shown live in UI.
Flow Rebate APR
If Flow captured $80,000 surplus today on this route, LP share is 30% → $24,000 to LPs
Your slice = $24,000 × 1% = $240 (today) → annualize similarly to get a trailing APR
How rewards are paid
LP trading fees: auto-accrue inside the pool; realized when you remove liquidity (or visible via position growth).
Farm rewards (XPGN): claimable in the Farms page; some pools support auto-compounders.
Flow LP rebates: credited per settlement to the LP Rebate Vault and claimable by LPs who held LP tokens at the settlement block.
Boosts (optional, when enabled)
Locking into stXPGN / veFlow can:
Boost your Farm Rewards APR on selected pools
Earn a share of the 10% locker cut from Flow surplus
Influence gauge weights (where emissions go)
Key benefits
Stackable earnings: fees + emissions + Flow rebates
Utilization-aligned: more active routes → more rebates
Protocol resilience: Treasury’s 0.05% fee share builds POL, strengthening liquidity for everyone
Testnet (next 3–4 weeks)
Base fee split: 0.25% LPs / 0.05% Treasury
Flow surplus split (pilot): 60% trader / 30% LPs / 10% lockers
Surplus protocol skim: 0% (disabled on testnet)
APRs shown as estimates; Flow rebates display as trailing stats while batches run
Notes & risks
APRs fluctuate with volume, price impact, surplus availability, and emissions policy.
Impermanent Loss can offset rewards if prices diverge significantly.
Surplus only exists when the solver executes better than the trader’s
minOut.
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