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# Farming

Farms allow users to earn BlueLotus tokens while supporting Blue Lotus DAO by staking LP Tokens.

Yield Farm APR calculations include both:

**LP rewards APR**earned through providing liquidity and;**Farm base rewards APR**earned staking LP Tokens in the Farm.

Why? Because when you stake your LP tokens in a farm to earn BlueLotus Tokens, you're still providing liquidity to the liquidity pool, so you earn LP rewards as well!

So how do we calculate those figures?

The

**Farm Base APR**is calculated according to the farm multiplier and the total amount of liquidity in the farm -- this is the amount of tokens distributed to the farm.On top of that, farmers receive

**LP rewards**for providing liquidity. Here's an example of calculating**LP rewards**:In the pair above (FOR EXAMPLE), we see these values:

**Liquidity:**$XXX.XXM

**Volume 24H:**$YY.YYM

**Volume 7D:**XXX.XXM

- Calculate yearly fees
- Use the 24H volume to calculate the
**fee share**of liquidity providers in the pool (based on the 0.17% trading fee structure): $YYY.YYY,YY*0.17/100 =**$FFF,FFF** - Next, use that
**fee share**to estimate the projected**yearly fees**earned by the pool (based on the current 24h volume): $FFF,FFF*365 =**$SSS.SSS,SS**

- We can now use the yearly fees to calculate the
**LP rewards APR:**That's**yearly fees**divided by**liquidity:**($SS.SSS,SS/$XXX.XXX.XXX)*100 =**??.??% LP reward APR**

Last modified 5mo ago