Tezos DeFi Series Part 3 — How to create a farm on Tezos
Part 3 of the Tezos DeFi Series is an explanation on “How to create a farm on Tezos”. Creating your own farm on Tezos is quite simple. All you need is to use the service of crunchy.network.
The next steps will guide you through all relevant steps. Please note: If you are new to the Tezos DeFi topic, just read the last articles of this series:
If you are ready, let’s start!
What is a Tezos farm?
A farm in general is a smart contract you can interact with. Basically you get a reward for providing liquidity on the specific pool. In the Tezos DeFi Series part 2 this is explained in detail. In series 2 we learned how to participate in other farms. This article shows you how to start your own farm by using a DeFi-As-A-Service platform.
We use crunchy.network. Link below:
Important: READ the COMPLETE tutorial first. You need several token to create the farm in advance.
How to create a Tezos token farm on Crunchy?
First go the Crunchy and connect your wallet. After that click on “Create a farm”.
You will now see the following input form:
Please note that this tutorial will show you how to start a farm. We will go through all input fields you need to consider. In this example article we will showcase the distribution of token via a Tezos farm. Therefore we use our own token.
We use the following:
- Tezard Coin (TZD) — as liquidity pool (the pool is already active on Quipuswap)
- Tezos King (TZK) — newly created token for distribution
That means, we want to reward Tezard Coin (TZD) liquidity providers by giving away TZK coins to them via a farm.
Tezos contract addresses:
TZD: KT1RhRYoGmhDr4DShdggQqumRAhwAETxrs3t
TZK: KT1JoBx9GQmWZts7vdUEe5uU2wsWZiAhrepf
Please note that the Tezard Coin and the Tezos King token has no rights attached to it or whatsoever. They are solely educational/meme token like Dogecoin. Investing in cryptocurrencies, using DeFi protocols etc. can bear high risks and can lead to a total loss of coins or investment. Please do your own reseach, this article is just a technical review and no investment advice.
Good, let’s get started!
Pool Token
As we explained, we want to reward XTZ/TZD liquidity providers. Therefore the pool token needs to be set to your liquidity pair, you want to reward. In our case: the XTZ/TZD liquidity pool (LP)
You can enter the name of the token and search for it, if there is an active liquidity pool on Quipuswap. You also have to select the token standard (FA1.2 or FA2), you can check that also on Quipuswap or you know your standard after you created a token. The “Token ID” is normally 0.
Reward Token
In this tutorial we will show you how to reward liquidity providers with token by distributing them via a farm. Therefore we created a new token called the “Tezos King”. We will now set this token for distribution.
Timeframe
A farm distributes the token over a specific timeframe.
That means: amount token/timeframe in seconds = distribution per second
You can set the timeframe here:
We want to distribute our token over a 4 months timeframe:
You can select any timeframe you want!
Reward Deposit
In the section “Reward Deposit” you can set the amount of token (of your set reward token) you want to distribute to the liquidity providers.
We now enter 5 million TZK token. That means, we will reward Tezard Coin (TZD)/XTZ liquidity providers with 5 million Tezard King (TZK) token.
Combined with the timeframe this means: We will reward TZD/XTZ LPs with 5 million TZK over a period of 4 months. You can adjust this parameters for your farm as you wish.
Important: You need to have the amount of token you want to distribute on your Tezos wallet you are connected to Crunchy.
Bonus Period
In the “Bonus Period” section you can adjust the distribution. For example you can adjust the distribution as more token are distributed within a specific timeframe. For example you can reward early LP provider with more token.
This would look like that:
This field is not mandatory. Applying more distribution within a specific period will lead to a lower distribution in the other timeframes.
Service Fee
For the service of Crunchy you have to pay a low fee in the platform’s native token Crunch and a percentage of your distibution token. The amount of distribution token depends on the selected fee.
You need at least 100 Crunch. You can buy them on Quipuswap:
Important: You need to buy Crunch before creating the farm. You need the amount of Crunch on your wallet you are connected. You also need additional distribution token for paying the fees.
You will see everything in the summary on the right side:
Create the farm
Click-on “Create Farm” and confirm the blockchain transaction.
Once the transaction is confirmed you will see your farm on Crunchy:
That’s it. All you need to know! Happy Trading!
Kind regards
Tezard
— You shall not parse! —
Disclaimer: Please note that this article is only a technical review. There is no investment advice given here. Please note that investing in cryptocurrencies can involve high risks. The reviews are based on our opinion. Please verify the exchanges on your own. Buying and storing cryptocurrencies on an exchange involve risks. Please inform yourself on the risks of cryptocurrencies. The term “passive income” means that you will be rewarded with Tez by participating in the network. If you can earn money depends on the current market prices of the Tezos coin, which can not be foreseen. Also using centralized or decentralized exchanges can result in a total loss of your assets. Do your own research on everything! Please note that the Tezard Coin has no rights attached to it or soever. It’s solely an educational token. Investing in cryptocurrencies, using DeFi protocols etc. can bear high risks and can lead to a total loss of coins or investment. Please do your own reseach, this article is just a technical review and no investment advice.