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Synthetic Farming

⚠️ Features discussed here are under development and are subject to change. They will be introduced during the MVP phase of deployment. Please check out our roadmap for details.

TLDR; if you want to jump into synthetic farming right away, you can follow the visual guide here: Synthetic Farming

Synthetic Farms and Assets

Synthetic farming at Arable allows anyone to farm multichain yield. Yield farmers can access all farms from a single interface, and moving funds between farms is easy and inexpensive.

The Arable ecosystem employs synthetic assets and synthetic farms that are modeled after their native chain counterpart. Synthetic assets are pegged to their native chain equivalent, and synthetic farms track the APR and reward structure of their native chain counterpart.

What is Yield Farming?

First, to understand synthetic farming in DeFi, let us look at ‘regular’ yield farming. In one sentence, yield farming is locking up crypto assets for rewards. This locking up of assets is called either staking or lending: Staking is leasing crypto assets to the blockchain, and lending is leasing crypto assets to human borrowers.

There is a wide variety of yield farms available on different blockchains. Some of the more popular platforms that offer yield farming are lending services like AAVE or exchange liquidity pools like Curve.

Why use Synthetic Farms when I can just use Native Farms?

Disadvantages of traditional Native Farms

The typical yield farmer does not only stake their funds at a single platform and leave them there for an extended period. Most farmers engage in complicated strategies like ‘crop rotation’ or leveraged borrowing.

Yield farming usually involves moving funds from platform to platform, swapping between tokens, and bridging across blockchains. Farming across blockchains like this is not only complicated but can also be costly as transaction fees add up quickly, eating into the farming profits. There is also the risk of slow or failed transactions causing increased costs or missed opportunities. When there are many platforms involved, the points of failure increase.

The Advantages of Synthetic Farms

Synthetic farms at Arable Protocol avoid those pitfalls by letting users farm many farms from multiple chains in a single app. Synthetic farms are yield farms that can be considered ‘virtual’ farms, which copy existing farms on other blockchains. These synthetic farms behave like their real counterparts and generate rewards at the same rate.

The main difference between the 'real' native farms and the synthetic farms at Arable is that farmers stake synthetic crypto assets (called ‘synths’) instead of native assets, and the rewards are also paid out in synths. These rewards can then be converted to native chain assets at supporting DEXs like Curve on Avalanche.

The steps are:

1) Swap synth rewards to arUSD at Swap

2) Go to the arUSD Tri-pool at Curve and swap arUSD to any other cryptocurrency of your choice

Yield farming on multiple chains is easy. You can swap between synthetic crypto-assets of different chains at the Arable DEX and stake them at various synthetic farms. You can track all your funds and staked assets in one place. Let us see how easy it is in the next section.

Why Farm at Arable?

Farming at Arable gives several advantages compared to multichain farming in the traditional sense.

  • Unified. All transactions happen on a single platform.
  • Synthetic farms offer the same yields and rewards as on the native chains.
  • Inexpensive. You never have to pay bridging fees, and the swapping fee is only 0.3% flat for any synth.
  • Simple. You do not have to get acquainted with multiple chains ecosystems and DeFi platforms. Everything is accessible in the Arable app, so you always know where your funds are invested.
  • Flexible. The moving of funds between different yield opportunities was never this comfortable and low-cost.
  • Time-saver. Because you do not have to keep track of your multichain farming activities on multiple platforms and chains, the administrative overhead becomes negligible, saving time and hassle.

Farming Interface

The interface of the Arable app for synthetic farming has three main areas:

  • Farms: All available farms
  • Swap: Our DEX for swapping between synthetic assets
  • Asset: Assets overview

Synthetic Farms

Arable offers a growing selection of synthetic farming opportunities. You can choose from various synthetic farms to stake in, including LP tokens and multi-token liquidity pools.

DEX

The Arable DEX will most likely be your first stop after coming to the Arable platform. Here you can swap between synthetic cross-chain assets instantly. It is also inexpensive and without slippage.

Swapping synths has a flat fee of 0.3% of the transaction volume.

Asset Overview

Here you can find an overview of all the synthetic assets you are holding.

How does it work?

Premise

Arable offers farms for staking with synthetic LP and synthetic cryptocurrencies. The farms offer the same yield and synthetic reward tokens as the native chain. They track their native chain counterpart based on an oracle-based data feed.

Where do I start

To enter the ecosystem you can buy arUSD at the arUSD Tri-pool at Curve . arUSD is a token that is pegged to USD. You can swap arUSD for any other synths on the Arable platform.

Synthetic liquidity mining farms allow you to stake synthetic LP tokens directly. You do not need to provide a pair of tokens to start liquidity mining. You can buy synthetic LP tokens directly from the Arable DEX (Swap) with arUSD or swap directly between synths.

Arable DEX

You can access the synthetic DEX at Swap in the app.

Here you can swap arUSD into any other synth. There is a variety of tokens to choose from, like arQuickswapETHUSDC (synthetic Quickswap ETH/USDC LP) or arSOL (synthetic Solana SOL). You can also swap between all combinations of synths directly.

A synth (synthetic asset) is a token that represents a derivative of the native chain equivalent. The synth's name is composed of the prefix "ar" and the name of the native chain counterpart that it tracks. Examples are arETH tracking ETH on Ethereum and arSOL tracking SOL on Solana.

The DEX works by burning the incoming tokens and minting an equal value of the target token. For example, you want to swap 2,000 arUSD for synthetic ETH ('arETH') and the price of 1 ETH is $1,000. In this case 2,000 arUSD are burned and in its place, two arETH are minted. This process works the same when swapping between two different synths as well.

Synthetic Farming

Choose the appropriate farm and stake to lock in your tokens to start yield farming. You immediately start generating rewards. You will receive the synthetic version of the native chain reward token, which can be swapped into any other synth at the DEX, including arUSD.

Crop Rotation

It is easy to unstake, swap, and move your funds to another farm at any time. Since the whole ecosystem is built on synthetics, rotating crops is cheap and uncomplicated (dare I say, fun?).