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Yield

Yield on Arrowfarm comes from two sources:

  1. Vault yield generated by the underlying liquidity strategy.
  2. $ARROWFARM emissions distributed as protocol incentives.

Total Yield

Runs in parallel

Vault Yield

Trading fees generated by underlying LP vaults

$ARROWFARM Rewards

$ARROWFARM token emissions distributed by Arrowfarm

Flow diagram: Total Yield splits into two parallel sources: Vault Yield, from trading fees generated by underlying LP vaults, and $ARROWFARM Rewards, from $ARROWFARM token emissions distributed by Arrowfarm.

Vault Yield

Arrowfarm deploys liquidity into external platforms such as Uniswap.

When users trade through those platforms, they pay trading fees. A portion of those fees is earned by the Arrowfarm vault providing liquidity.

Arrowfarm then collects and reinvests those fees when it is economically worthwhile to do so.

Vault yield can vary depending on:

  • trading volume;
  • pool liquidity;
  • fee tier;
  • how long the position remains in range;
  • market volatility; and
  • the performance of the underlying strategy.

$ARROWFARM Rewards

Eligible vaults can also earn $ARROWFARM token rewards.

88% of all newly emitted $ARROWFARM is allocated to vault incentives and distributed across eligible Arrowfarm vaults. These rewards are separate from the trading fees generated by each vault’s underlying liquidity strategy.

$ARROWFARM follows a fixed emission schedule. Tokens are emitted until the maximum supply is reached, after which emissions stop permanently.

Note: $ARROWFARM reward allocations are not fixed. The amount of emissions directed to each eligible vault may be adjusted over time, and participation in the emissions program does not guarantee any particular reward rate or duration.