# Farming

Meridian Swap provides a way to bootstrap liquidity as well as a way to generate extra yields which is through the use of **"Farms"**

Farming allows you to earn extra yields by staking your LP tokens . Rewards are calculated dynamically and so you will be able to see how much you have earned as it happens.'

### How Yields Are Calculated

The Farm APR calculations include both:

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

This is because, when you stake your LP tokens in a farm, you're still providing liquidity to the liquidity pool and so you earn LP rewards.

**FarmTotalApr = FarmBaseApr + LPRewardsApr**

### Farm Base APR <a href="#farm-base-apr" id="farm-base-apr"></a>

The **Farm Base APR** is calculated according to the farm multiplier and the total amount of liquidity in the farm.&#x20;

The multiplier reflects how much of the total available asset(reward) is given to any particular pool and the value of this allocated asset is then compared to the total liquidity in that pool in order to establish the farm APR.

The **LP reward APR** is calculated by comparing the total liquidity in a pool with the transaction volume of that pool.

### &#x20;LP Reward Apr

1. **LP fee in 24H**: Use the 24H volume to calculate the **fee share** of liquidity providers in the pool (based on the 0.17% trading fee structure) = 0.17 x 24H volume / 100
2. **LP fee Yearly**: Next, use that **fee share** to estimate the projected **yearly fees** earned by the pool (based on the current 24h volume): LP fee in 24H x 365 (1 year)
3. **LP Reward Apr:** (LP fee yearly / total liquidity of the pool) x 100


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