Liquid Farming is Here!

Dear friends, we are excited to announce the launch of Liquid Farming—an important milestone in the evolution of our ecosystem. This isn’t just another product; it’s a powerful tool that unlocks new opportunities in decentralized finance.

Today, we’ll explain what Liquid Farming is, its key benefits, and how you can start earning during the bootstrap phase with our first vaults. Ready to dive in? Let’s go!

What is Liquid Farming and Why is it Game-Changing?

Liquid Farming takes liquidity farming to the next level, allowing you to stay flexible while your assets generate yield. Unlike traditional liquidity pools, where tokens are locked, Liquid Farming provides lfETH—liquid tokens that can be used in DeFi protocols, traded, or held until vault expiration to redeem ETH.

It combines the best of both worlds: farming rewards and liquidity freedom.

How Does Liquid Farming Work?

Let’s take the WETH/yaySTONE pair on Velodrome as an example:

1. You deposit 1 ETH and approximately 1 yaySTONE into the vault.
2. The liquidity is sent to Velodrome.
3. You receive 1 lfETH, equivalent to your ETH deposit.
4. You start earning trading fees from the WETH/yaySTONE pair plus ALGM incentives proportional to your vault share.
5. You can use your lfETH—for example, by adding it to an ETH/lfETH pool for additional fees.
6. After vault expiration (or anytime before), you can withdraw your liquidity.

All pairs are configured to operate within a normal price range, ensuring a balance between the risks of impermanent loss and farming rewards.

Key Benefits of Liquid Farming

• Liquidity Without Locking Funds – Receive lfETH instantly and use it for trading or DeFi strategies in the Soneium ecosystem.
• Multiple Rewards – Earn trading fees, ALGM incentives, and farming rewards.
• Flexible Strategies
  • Hedge your position by selling lfETH if you expect ETH prices to drop.
  • Maximize earnings by adding lfETH to pools or holding until expiration.

This is the power of Liquid Farming—your assets generate yield while you stay in control.

Liquid Farming Vaults at Launch

We have selected three key trading pairs based on their liquidity potential in the Soneium ecosystem. Each vault runs for four months, giving you the opportunity to enter early and maximize earnings.

Active Vaults at Launch:

• WETH/yaySTONE – Velodrome
• WETH/yayAgETH – Velodrome
• ETH/wstETH – KYO

Each vault offers a unique opportunity to add liquidity, receive lfETH, and start earning.

Bootstrap Phase Rewards – Start Earning Now!

To make the Liquid Farming launch even more rewarding, we’ve prepared generous incentives for early participants. Here’s what to expect:

ALGM Incentives

The following ALGM rewards are allocated to each vault for four months:

• WETH/yaySTONE – 200,000 ALGM
• WETH/yayAgETH – 55,097 ALGM
• ETH/wstETH – 4,000 ALGM

Key Details:

• Rewards are distributed daily (ERA) based on your liquidity share.
• The more you deposit, the more ALGM you earn.

Additional Rewards in Liquid Farming

• Farming Rewards – Earn AMM trading fees.
• Algem Points – Earn extra rewards on your deposits!
  • Providing liquidity in vaults earns Algem Points.
  • These points can later be exchanged for ALGM or other rewards, further increasing your earnings.
• ACS Points – Participate in the Astar Contribution Score (ACS) campaign by Astar Network & Soneium.
  • This campaign runs from February 20, 2025 – May 30, 2025, distributing 100M ASTR to active Soneium users.
  • Depositing into our vaults earns you ACS points, which can be exchanged for ASTR tokens later.
• Partner Points (Yay! & KYO)
  • Our partners Yay! and KYO are running point programs as well.
  • By joining Liquid Farming, you earn their points too.

Important: ACS Points, Yay! Rewards, and KYO Points earned through Liquid Farming won’t be displayed on dashboards when you connect your wallet.
We will share your earned points with the respective teams after the campaign ends, and you will receive rewards accordingly.

Why is Liquid Farming a Great Opportunity?

• Multiple Income Streams – Earn ALGM incentives, farming rewards, Algem Points, ACS points, and partner points—all from a single action.
• Early Advantage – Early participants receive higher rewards per liquidity unit before vaults fill up.

Join Liquid Farming Now!

Liquid Farming is your chance to earn more while staying flexible in DeFi. We’ve designed this launch to be as rewarding as possible—don’t miss out!

What’s Next?

1. Go to Liquid Farming – https://lf.algem.io/
2. Choose a Vault – WETH/yaySTONE, WETH/yayAgETH, or ETH/wstETH.
3. Deposit Liquidity & Receive lfETH.
4. Start Earning – ALGM, farming rewards, Algem Points, ACS points, and partner points rewards.

Have questions? Check out our FAQ or reach out in the community.

Let’s build the future of DeFi together!

About Algem

Algem is a decentralized application built on Astar Network and Soneium offering two main features: Liquid Farming and Liquid Staking. As the names suggest, these two options let ASTR and ETH holders keep their assets liquid while putting them to work. Liquid Farm or Liquid Stake with Algem’s Cross Chain platforms from Soneium or Astar Network and earn multiple rewards in the process. With Liquid Farming you’ll get a liquid lfETH fully redeemable token, in exchange for your ETH deposit to utilise this across the Soneium ecosystem all whilst earn farming fees and accruing Algem’s Native token ALGM in the process. In Liquid Staking, you’ll earn rewards that are automatically compounded with the Reward bearing xnASTR token for APR Yield in a simplistic way offering you peace of mind.

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