Derive Farm
A Derive Farm can be created by anyone and is a farm derived from a specific Main Farm. It is used to increase the staking power of the Main Farm by procuring Staking Assets handled in the Main Farm from a wide range of participants using the Asset paid as a reward. Therefore, it is a Farm where the staking asset and the reward token, which is paid as interest for the staking period, are different.
Since the staking token and the reward token are different in the Derive Farm, rebase cannot be performed, and therefore compound interest cannot be applied. Therefore, there are no plans to support compound interest calculation in Derive Farms in the future.
The Derive Farm model allows for the distribution of specific assets prepaid by the Farm's creator, the Master, over a period defined by the Master's Interest Cycle. This enables anyone to create a Derive Farm by offering desired assets as compensation, attracting participation from various stakeholders seeking those assets as compensation. As a result, the Master can enhance the share rate, or staking power in the Main Farm the Derive Farm follows, by leveraging the collected staking assets from an unspecified number of participants. Ultimately, this strategy enables the Master to pursue greater rewards from the Main Farm, resembling the concept of a Launchpool.
Scenario
This scenario illustrates how individuals like Alice and Bob can leverage the concept of Derive Farms to create additional opportunities for earning rewards and increasing their staking power within the Coinmeca ecosystem, as discussed in the technical content provided earlier.
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Alice doesn't hold any MECA tokens but wants to increase her staking power in the MECA Farm. However, she does have her own token called ABC.
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To achieve this, Alice decides to create a Derive Farm called ABC Farm within the MECA Farm ecosystem. She plans to use her ABC tokens as rewards for its stakers in this new farm.
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Meanwhile, Bob holds MECA tokens and is already staking them in the MECA Farm to earn MECA rewards. However, he's also interested in exploring additional opportunities for earning profits with new tokens.
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Bob notices that Alice has created the ABC Farm and decides to stake his MECA tokens in this new farm for a certain period. In return, he receives ABC tokens as a reward.
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Alice can now participate in yield farming at the MECA Farm by utilizing the staking power provided by Bob's staked MECA tokens in the ABC Farm.
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Although Alice does not hold any MECA tokens directly, she can leverage the derived farm to take part in the MECA Farm.
This strategic move enables Alice to earn MECA rewards, which broadens her earning opportunities.
Create
The creation process of a Derive Farm involves several key steps. Firstly, consideration must be given to the Main Farm from which the Derive Farm will be derived. This choice is crucial as it determines the specific Staking Assets and reward mechanisms that will be utilized. Once the Main Farm is selected, the next step involves determining the asset and quantity to be allocated as compensation for staking. Additionally, the period for distributing these rewards, known as the Interest Cycle, needs to be defined.
The Interest Cycle must be at least 24 hours (1 day / 86400 seconds) or more. It means that after the first reward is paid, if no new rewards are added to the relevant Dervice Farm, the farm will end 24 hours after the first staker stakes. For instance, if the intention is to distribute a fixed quantity of a specific token, such as token X, over a period of one year and then conclude the distribution, the period parameter can be set to one year (31,536,000 seconds).
However, reaching the end of the period simply signifies the conclusion of the distribution schedule and does not imply the termination of the Farm's existence. For example, if the period is set to one year, once the previous distribution schedule for the Farm has concluded, regardless of the elapsed time, any new rewards allocated to the Farm will initiate a fresh distribution cycle for the subsequent one-year period. If rewards are added six months after the initial setup, the calculation of the period restarts from that point, resulting in a total period of one year and six months.
However, one thing to keep in mind is that direct transfer to the farm contract through a token contract or wallet is not included in rewards, so you must keep this in mind and call the addReward function when attempting it at the interface or code level.
Claim
At the Derive Farm, there is no separate Harvesting process; instead, stakeholders can only claim and promptly receive the accrued interest rewards. This distinction stems from the fact that, unlike the Main Farm, the Derive Farm primarily utilizes staking assets and rewards in different forms, making it challenging to merge harvested interest rewards with the principal. Consequently, compensation generated from the farm can be obtained through a claim, with two distinct types depending on the claimant.
From Master
The Master of the Derive Farm can harvest interest profits generated in the Main Farm through this farm. Therefore, assets acquired from stakeholders staked in the farm are staked in the Main Farm under the Derive Farm's name. This process claims interest rewards generated in the Main Farm from assets acquired through the Derive Farm.
Interest rewards generated in the Main Farm align with the staking asset in Derive Farm, but the function to merge the principal amount staked by Derive Farm's stakers with the rewards harvested from the Main Farm to rebase the assets is not yet supported.
From Staker
Stakers can claim interest profits generated in the staking farm through claiming. Since the interest generated for stakers in the Derive Farm may differ from the staking assets, prior confirmation is necessary. Moreover, as staking assets and assets generated as interest differ in decimals or quantity, they cannot be merged with the principal amount. Therefore, claiming interest rewards allows for immediate receipt, and this process should be performed regularly.