# Yield Farming ## What is Yield Farming? Yield Farming is an initiative used by protocols in *DeFi* to incentivize liquidity and utilization by rewarding users in governance tokens (such as MIN). The idea is to acquire users by giving them **ownership of the protocol itself**, in accordance with the *ethos* of decentralized protocols that are wholly owned by their users. In Minswap, this translates to distributing **MIN token rewards** to users who Provide Liquidity on our DEX and stake their Liquidity Provider Tokens (LP Tokens or **LPTs**). Staking LPTs will earn you MIN rewards in proportion to how much the share the LPTs you are staking is compared to the total LPTs staked in the particular farm. Minswap will aim to have an effective system for farming yield, while also offering the best user experience. ## **Yield Farming Vesting Schedule** ### Bootstrapping Phase During the first 5 months after deployment of the DEX, Minswap went through a *Bootstrapping Phase* using a predictable and aggressive Yield Farming Schedule to bootstrap users and TVL. In total, to bootstrap liquidity and to ensure early supporters of Minswap are maximally rewarded, **5% of total supply** was allocated towards *Yield Farming* in the first 5 months. ### **Minimax** Phase After the *Bootstrapping Phase*, the Minswap DEX entered the *"Minimax Phase"* with a *Dynamic Schedule* approach. During the **Minimax Phase** following a [*Dynamic Schedule*](https://minswap-labs.medium.com/minomics-research-part-2-introducing-dynamic-emission-schedules-974783ef1f8d), Emissions were gradually decreased from the starting rate of 1,333,333 $MIN emitted daily to 666,666 $MIN daily. ### **Current State** Once the **Minimax Phase** was over, an [**Emissions Report**](https://minswap.org/storage/2023/06/31-3-2023_Emissions_and_Treasury_Report.pdf) was released to give insights into the effectivenes of how Dynamic Emissions were implemented so far. The main conclusion was that Dynamic Emissions are working as intended, but a reduction in the Emissions was still needed. A Governance Proposal was drafted and approved with the following mandates: 1. ***Lower the lower Bound of Emissions by 50%*** : emissions have a lower bound of 333,333 MIN minimum per day. Be mindful that this is an adjustment to the range of the emissions rate, it does not necessarily mean that the lowest rate will be implemented. 2. ***Lower the higher Bound of Emissions by ≈50%***: the higher bound was lowered from 1,999,999 MIN per day to maximum 1,000,000 MIN per day. 3. ***Adjust the Daily MIN Emissions Rate dynamically every 2 weeks***: with the **maximum weekly change being a 10% variation** from last MIN Emissions Rate. A Working Group was created (with members who authored the Emissions and DAO Treasury Report) to monitor and decide on the adjustment. The $MIN Emissions Rate is changed bi-weekly. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.minswap.org/min-token/yield-farming.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.