# Introduction Onchain rebalancing, ingeniously automated Antfarm is an onchain rebalancing protocol built using a Decentralized Exchange (**DEX**) architecture but fully dedicated to Liquidity Providers (**LPs**). The protocol is permissionless and immutable. It has been deployed on Ethereum, Avalanche, Arbitrum and Polygon zkEVM. {% hint style="success" %} Antfarm embodies the spirit of decentralized innovation, offering a hands-off rebalancing approach that **nurtures your investments** for **consistent long-term returns**. {% endhint %} ### Antfarm's vision In the rapidly evolving landscape of DeFi, Antfarm emerges as a pioneering protocol, embodying a philosophy that champions the significance of time in the market over the uncertainties of timing it. Our vision is rooted in the powerful strategy of tolerance band rebalancing, a proven method for a hands-off investment approach that aims for consistent long-term returns. At the heart of Antfarm lies the understanding that investment shouldn't be a source of constant stress and anxiety. Traditional market behaviour often leave investors on edge, reacting to every market fluctuation — every dump and pump. We recognized the need for a solution that aligns with the ethos of stress-free investment, thus giving birth to Antfarm. Our protocol, a refined fork of Uniswap V2, stands out with its distinctively high fees. This key feature enables Antfarm to function as an automated tolerance rebalancing tool. It's a strategy elegantly simple in its design yet profound in its impact. By harnessing the power of on-chain automation and the natural dynamics of arbitrage, Antfarm automates assets management. Once your assets are added to Antfarm's pools, you're no longer a passive spectator to the whims of a volatile market. Instead, you become a partaker in a journey of generating long-term value, riding the waves of market volatility with the assurance that your assets are continuously rebalanced in an optimised way. Our vision with Antfarm is to redefine investment in the DeFi space — making it a journey of calm assurance rather than a ride of nerve-wracking speculation. By choosing Antfarm, you're not just investing your assets; you're investing in peace of mind, secure in the knowledge that your investments are growing, adapting, and thriving, no matter the market conditions. {% hint style="success" %} To accomplish this vision, we have designed the perfect ecosystem for each stakeholder {% endhint %} ### Ecosystem overview Antfarm as a DEX is built to provide LPs with a fair compensation for the risk they are taking. We quickly realized what was good for LPs, was essential for the entire ecosystem. **Antfarm is a positive-sum game**, where all stakeholders are incentivized to participate. {% hint style="success" %} A self-reinforcing ecosystem supported by a strong token, the ATF. {% endhint %} Antfarm's protocol is enhanced by the use of the Antfarm Token (**ATF**) on each and every pool for the payment of every swap fee, independently from the pair traded. **LPs have access to their collected fees at any time, without impacting the TVL of the pool.** Part of the claimed fees will be burned, leading to a steadily growing value of the deflationary token. Tokens can be **reinvested** and/or **compounded**. This offers a **dual source of revenue** for any LPs. Because Antfarm is characterized with **high pool fees**, allowing its pools to **replicate the Tolerance Band Rebalancing strategy**, it becomes particularly **attractive in turbulent markets**. When the volatility is high, traders will be very active on our pools, making **ATF a premium asset**. ATF will become even more valuable as **uncertainties grow.** ATF has been **designed** to become a **natural hedge against high volatility** environments. Lastly, because we are strong believers in the power of a decentralized community, Antfarm has been launched through a Decentralized Autonomous Organization (**DAO**). # Band Rebalancing AMM A new approach to LP profitability Antfarm Finance's band rebalancing strategy is a cutting-edge approach to liquidity management in the DEX space. This strategy is aimed at assisting liquidity providers to maximize profits while minimizing their exposure to risks. The band rebalancing strategy is based on setting upper and lower threshold bands for each liquidity pool, with the threshold value determined by the pool's fee. The purpose of this approach is to capitalize on market volatility and optimize overall profits while minimizing exposure to risk :
Typically, band rebalancing is carried out manually by traders who continuously monitor the market and adjust their positions accordingly. A significant advantage of Antfarm's implementation of this strategy is that it leverages external arbitrage bots to exploit market inefficiencies and further optimize the portfolio's performance. By integrating this strategy with Antfarm's pools, arbitrage bots trigger the rebalancing of Antfarm's pools when the market deviates significantly (and thus when a pool deviates from its band) creating arbitrage opportunity, making this strategy fully automated. This automated approach ensures that liquidity providers are less exposed to risks and can benefit from more optimized returns. # Pools What's so special about antfarm's pools ? Through its [Band Rebalancing](/strategy/band-rebalancing-amm) strategy, Antfarm's aims to offer **better profits** to Liquidity Providers, as well as a **tailor-made approach of their portfolio**. Antfarm offers a wide selection of fees when creating or joining a liquidity pool: **1%, 10%, 25%, 50% and 100%**. {% hint style="info" %} The swap fee directly impacts the Tolerance Band Rebalancing strategy by setting the rebalancing threshold. For example, a threshold of 10% ensures that whenever the value of one of the two assets represents more than 60% (50% + 10%) of the total value, it gets rebalanced back to 60. A 10% fee is equal to a 2.38% threshold, while a 25% fee means a 5.55% threshold, 50% a 10%one and lastly the 100% sets the threshold at 16.66%. {% endhint %}
Who would ever swap with such high fees? Swaps will happen when the **market price deviates enough** from the pool's price, creating an arbitrage opportunity. Eg. Antfarm's WETH/USDC 10% fee pool has a price of 1000 USDC per WETH. If the price goes over 1,100 USDC in other markets it creates an arbitrage opportunity: buying on antfarm's pool at 1,000 x 1.1 = 1,100 USDC and selling for a higher amount on a public market. It also works in the other direction if price goes below 1,000 / 1.1 = 909 USDC.
#### Benefits from providing liquidity in high fee pools Antfarm's unique remuneration offering allows for **more gain while mitigating the risks**. This appears to be too good to be true, how does it work? {% hint style="success" %} **Same performance, no matter the pool's TVL** Other Decentralized Exchanges rely on low swap fees coupled with high volumes to compensate their Liquidity Providers. The profits made by the LPs is based on the ratio volume/liquidity. The main issue with this model is that any profitable pool will attract more liquidity providers, increase the liquidity, thus lowering the returns until the average returns only covers the risks taken. Using a high fee pool, all the volume comes from arbitrage and the amount of liquidity doesn't matter. Even better, as arbitrage will require gas fees to be executed, which are not correlated to amount swapped, the more the liquidity the better. {% endhint %} {% hint style="success" %} **Higher profits, with less risk** When providing liquidity in liquidity pools, arbitragers swap against liquidity for a fee. Traders do it because they can profit from any slight market movement. Increasing the fee reduce the amount of swaps they can perform and keeps the profit from volatility mainly to the real risk takers, the Liquidity Providers. {% endhint %} #### Antfarm's Band Rebalancing strategy backed by heavy backtesting The theory of Antfarm is strong, but nothing against some (or a ton!) of backtesting! We applied our model to many historic pairs as well as projections. As swaps in high fee pools (10%+) are mainly from arbitragers (cold-blood machines and professionals), you can anticipate the pool's behaviour in any market conditions. We can predict reserves and collected fees and apply different strategies. Here's an example of a backtest using the ETH/USDC pool throughout the previous market cycle:
{% hint style="success" %} Main takeaways from our backtests: * As long as the pair is volatile enough and the strategy is ran for long enough, **the higher the fee the higher the profits,** * **The lower the fee the most consistant the profit.** {% endhint %} {% hint style="info" %} Increasing the swap fee increases the rebalancing threshold, meaning that the rebalancing is delayed. This means more volatility in the meantime but compensated by higher returns. {% endhint %} #### A tailor-made portfolio With Antfarm, Liquidity Providers can create their own strategy using one or multiple pools. Either increasing the profits or the regularity, they could benefit from both with multiple pools and pairs.
I am a liquidity provider, do I have to invest in high fee pools or can I constitute a balanced portfolio? On Antfarm, Liquidity Providers can create or invest in several pools, each with their own fee, and constitute a portfolio based on their own unique remuneration profile.
{% hint style="success" %} Antfarm brings multiple strategies for a single pair of tokens. On others DEXs, you are stuck with a single classic strategy. {% endhint %} #### Swapping fees paid in ATF All the fees paid to Liquidity Providers will be paid in the Antfarm's ecosystem utility token: **ATF**. {% hint style="success" %} Advantages of using ATF to pay fees and not the tokens of the pool: * ATF can be cashed at any time without any consequences on the portfolio volume or value. * They can be traded, reinvested or kept in order to benefit from its deflationary property as a potential secondary source of revenue. {% endhint %}
How to make sure the ATF do not lose its value? It is deflationary! To make sure collected fees keep their value over time (or even better, increase in value) we opted for a deflationary token. For any swap in an Antfarm pool 85% of the collected fees will be distributed among Liquidity Providers and 15% will be burned. Although this does not guarantee any short-term value increase, we believe that over a long enough term this will help to keep its value. At least while there is enough liquidity on Antfarm protocol.
# Oracle pools Aren't they all the same ? As you've just read, Antfarm offers a wide variety of fees for its pools but it still has a 1% fee pool. If one of the assets is ATF then it will be considered as an Oracle pool, if not it's just a pool where the Liquidity Providers want to let the takers swap for only a 1% fee. {% hint style="info" %} 1% fee pools will be interesting for Project Owners who might want to offer a low fee pool to their community while still being able to claim dividends from their positions. Read more in the Project Owners section. {% endhint %} In Antfarm pools, all fees must be paid in ATF. This is really easy to ensure in an ATF pool as the protocol takes a fee % of the absolute ATF reserve change. But how could it work with a pool based on two assets other than ATF ? {% hint style="warning" %} Pools with ATF tokens are the only ones that can't have a 100% fee due to the way the fee calculation is done. {% endhint %} 1% pools with one of the assets being ATF are considered as Oracle pools, they'll define the price of ATF against an asset, allowing any other pool with that asset to determine the amount of ATF to pay for the swap. In a case where both assets have an Oracle, the pool will chose the most liquid (the one with the more ATF in it), if it changes at any point in time, anyone can trigger a function to reevaluate the most liquid pool. The main mission of the DAO is to ensure that those pools have enough liquidity to allow other pairs to have an effective pricing of the fees to be paid. This includes creating new Oracle pairs. # Positions How do you interact with pools and manage liquidity ? When providing liquidity to any Antfarm pool, you'll receive what is called a Position, it is nothing more than an NFT (ERC721 token). It represents your share in the pool and lets you interact with the Antfarm pool you've provided liquidity to. This NFT is here to display and helps you manage your assets. Thanks to this, you'll be able to monitor your reserves, the amount of fees collected and some other features described below. *Here are some examples of NFT positions:*
### Other Features There are extra features on top of being able to check your reserves and claim your fees. #### Delegate dividend claims If you hold a significant position, you might want to store it on a hardware device safely. You can whitelist one address that will have the rights to claim the position's dividends. It is very useful if you want to actively claim and reinvest your profits from a secondary address for instance. {% hint style="warning" %} It'll be automatically revoked on transfer or you can do it manually at any time. {% endhint %} #### Lock your liquidity Project owners willing to gain trust from their community, may decide to lock their position's liquidity for a certain amount of time. {% hint style="info" %} While your liquidity is locked, you can still claim the profits generated by your position. {% endhint %} # Antfarm Token – ATF The utility token for Antfarm's ecosystem ![](/files/098vPGy0i2FLsn7lnb1Y) Antfarm Token (**ATF**) is an ERC20 token used to pay all swapping fees. It was introduced to fit all the needs of the different stakeholders in the ecosystem.
How is the ATF priced? Oracle pools will price ATF’s value against USDC, WETH, WBTC, USDT and any other major token used in DeFi.
Being deflationary (15% of the paid fees are burned after every swap) is a core property of the ATF token. This mechanism aims at protecting its holders. With every burn, the value of ATF increases theoretically. {% hint style="success" %} This might be a good investment for ATF token holder who wants to stay passive holders! Over time, the supply will shrink and as long as Antfarm's pools hold liquidity, **ATF will maintain a strong valuation and utility**. {% endhint %} Liquidity Providers can claim their fees at any moment, without any impact on the pool value or volume as these fees are paid with the ATF token. This has many advantages: * LPs can further custom their strategy by deciding if they should reinvest their collected fees, diversify into new pools or simply keep them in ATF. By introducing the ATF, we give LPs the ability to create new source of earnings, independently from their initial pool strategy. * Crypto-native projects are incentivised to launch liquidity pools with their own token in the Antfarm ecosystem. It gives them the opportunity to put their stack at work. They can use their collected fees (in ATF) to pay their day-to-day expenses as a company. It prevents them from selling their own token to do so. * For very risky pairs, if one asset value goes to 0, the LPs will lose all their stake in the pair. Thanks to Antfarm's fee system in ATF, even if one of the assets goes to 0, they would be compensated with a certain % from swapping fees. This is a strong risk mitigation. #### Increased demand during strong market movements Antfarm is even greater when markets are turbulent! This is when most swappers will be drawn to our pools. As ATF are required to pay for all swapping fees, the demand for ATF will be become substantial in such times. {% hint style="success" %} ATF could become a natural hedge against turbulent market, as its demand will increase when markets become volatile. {% endhint %} ### ATF Token Distribution Total Supply: 10.000.000 ATF * Pools collateral : 3.000.000 ATF * Liquidity funding: 3.000.000 ATF * Liquidity mining: 2.000.000 ATF * Linear sale: 1.000.000 ATF * ATF/AGT pool: 500.000 ATF * DAO reserve: 200.000 ATF * Marketing: 200.000 ATF * Bounties / contests: 100.000 ATF
*More about the different allocations and how ATFs are sold to the market:* {% content-ref url="/pages/zVLSMKWtBqJKxVDqMRfM" %} [Initial Liquidity Offering (ILO)](/dao/funding-and-incentivized-programs/initial-liquidity-offering-ilo) {% endcontent-ref %} {% content-ref url="/pages/qRas3CCHoo30vSWVHloq" %} [Liquidity Mining](/dao/funding-and-incentivized-programs/liquidity-mining) {% endcontent-ref %} {% content-ref url="/pages/uYpgfMtMJPt6HsFt5Tqw" %} [Linear Sale](/dao/funding-and-incentivized-programs/linear-sale) {% endcontent-ref %} # Liquidity Providers The heart of the ecosystem Liquidity Providers are at the heart of Antfarm's ecosystem. Antfarm's unique value proposal is to offer **tailor-made remunerative portfolios** to liquidity providers. At the end of the day, LPs are the real risk takers on a DEX. Backtesting is proving that this risk is less and less appreciated by the community as revenues shrink while popularity of DEXs increase. This was not a sustainable model and Antfarm intends to make it right. **Bring back the value to LPs!**
Why does high fee mean higher remuneration? Antfarm offers a wide selection of fees when creating or joining a liquidity pool: **1%, 10%, 25%, 50% and 100%**. This is much higher than most DEXs, where usual pool fee is set at 0.3%. This makes sense of course, higher fee = higher remuneration. But will there be enough volume? If no-one trades on our pools, its useless to have high fees! Considering only the volume generated from arbitrage opportunities, our extensive backtesting proved that: * As long as the pair is volatile enough and the strategy is ran for long enough, the higher the fee the higher the profits, * The lower the fee the most consistant the profit.
Why do we say that on Antfarm pools volume doesn't matter? On other Decentralized Exchanges, LPs would earn low swap fees against high trading volumes on their liquidity. In this case, you need high volumes to earn more. However, the more attractive the pool (ie the more volume on it), the more it will attract peer LPs. Lots of LPs means having to share the fee pie with more users. Using a high fee pool, all the volume comes from arbitrage and the amount of liquidity doesn't matter as volume and liquidity are directly correlated. Even better, as arbitrage will require gas fees to be executed, which are not correlated to the tokens swapped, the more the liquidity the better.
Why is Antfarm fee structure more remunerative than any other DEXs? On other Decentralized Exchanges, fees would be paid in the tokens of the pool. Antfarm chose to have fees paid in ATF to bring parallel and safe remuneration to LPs: * even if the value of the pool crashes, LPs would have earned a separate token, which value is not correlated with the pool's value; * ATF is self-reinforcing in turbulent markets, this is when high-fee pools become the more interesting and the need for ATF is the strongest.
# Project Owners A plug-and-play business model Antfarm provides a plug-and-play business model to all crypto-native projects. By providing liquidity on Antfarm pools, Project Owners (**PO**) can **generate profits from the token volatility and increase its overall liquidity**. Antfarm offers **fully customizable locking options** for their token and they can choose what's best suited for their project and investors. Furthermore, projects joining the Antfarm ecosystem will benefit from **the power of the community** and will incur ATF as their pool becomes popular.
How can POs gain traction on their project's token thanks to Antfarm? Antfarm has been designed for exotic pairs, higher risk tokens swapped against a high fee. This is the perfect ecosystem for a nascent token, with no track record yet but with a bright popularity coming up.
How to confort project's investors thanks to Antfarm? On Antfarm, Project Owners will be able to lock their token for a period of time of their choice. This is a big plus when launching a token and securing investors. They will immediately understand that your project is solid and is your priority. Indeed, pretty often investors worry that the project will defocus on its mission. It's always better to have a team **focused on their mission rather than spending their time, energy and focus worrying about their token valuation**. With Antfarm, investors know that as long as the token exists and is actively traded, the team costs will be covered. Also, securing a project token on Antfarm will safeguard its volatility. Indeed, when adding liquidity to a pool with x% fees, you add liquidity outside a channel around the actual price (1/1.x for the lower border, 1.x for the higher border). By arbitraging with the most liquid market, it can add a lot of buying (when price goes down) or selling (when price goes up) pressure when the price deviates outside of that channel.
Can Project Owners make extra revenue on Antfarm? Yes! Thanks to the ATF token. Any transaction on the Project's token will be paid with ATF. Project Owners can then decide how to better manage this secondary source of revenue: cash it in, reinvest it or let it compound thanks to its tokenomics. Owning ATF is a safety net in case the project token crashes, as ATF is not correlated to the token's value. On the contrary, as transactions increase on the project's pool, more ATF will be earned and more side value will compound for POs.
# Arbitragers Usually unwanted, Antfarm needs them **Arbitragers are pragmatic animals**: they will swap when there is value to be made. They are looking for discrepancies in the markets and will automatically re-balance the market when they catch one. Antfarm is made for them: when markets will have shifted enough to compensate the high fees of the pool, **they will swap**, cashing in good-value token and feeding the Antfarm community with high level ATF.
Why would arbitragers be interested in low-volume high-fee pools? Arbitragers are pragmatic, if they see an opportunity to make money, they will take it, even if it is less often than on a low-fee high-volume pool. For them, a market deviation is a money opportunity. Eg. Antfarm's WETH/USDC 10% fee pool has a price of 1,000 USDC per WETH. If the price goes over 1,100 USDC in other markets it creates an arbitrage opportunity: buying on antfarm's pool at 1,000 x 1.1 = 1,100 USDC and selling for a higher amount on a public market. It also works in the other direction if price goes below 1,000 / 1.1 = 909 USDC.
Will arbitragers be able to swap often on Antfarm? No, they won't be able to swap as often as on low-profit pools, but when they will, it will be profitable and for a close to zero risk. Arbitrage is a very competitive field and Antfarm's focus is not towards the type of arbitragers that fight for the more popular pools.
What will arbitragers make of the ATF? Arbitragers will need ATF to be able to swap on any pool on Antfarm. They will have many options to effectively use ATF: * Holding early on, so that when markets become turbulent they can use ATF extensively to swap on any pool; * Buying it just before any trade or group of trades; * Buying ATF and then swapping in the same transaction.
# Investors The easiest way to support the ecosystem Liquidity Providers, Project Owners and Arbitragers are at the heart of Antfarm's ecosystem. However, other very important players of this positive-sum game are the investors. Either initial believers in the project and continuous supporters, they fuel the platform and its developments and are rewarded accordingly by the community. Here is how. ### Investing in ATF ATF is the utility of the ecosystem, as it gets used a portion is burned to ensure its long term demand. Investing in ATF means investing in a token that is purposely built to increase in value. Of course, it is not for sure, there is always risk! But as the platform's popularity grows and with it, both the use of ATF and its burning, a virtuous cycle is created. {% content-ref url="/pages/dmhGlOoMk7rWDGY6Rsrn" %} [Antfarm Token – ATF](/strategy/antfarm-token-atf) {% endcontent-ref %} ### Investing in AGT AGT is the governance token of Antfarm DAO. The DAO supports Antfarm's protocol and helps its development and growth. Owning AGT gives you right to be part of this management process and influence the present and the future of the platform! To use it for governance purposes such as making proposals or voting, you'll have to stake it. When doing so, you'll receive ATFs rewards from the DAO profits. {% content-ref url="/pages/KqVexyBPiIvjhiVAZBp3" %} [Antfarm Governance Token - AGT](/dao/governance/antfarm-governance-token-agt) {% endcontent-ref %} {% hint style="info" %} **Antfarm is looking for long-term serious and involved partners to build their community with!** {% endhint %} Why should anyone trust Antfarm when investing in AGT? Because it is the most **self-reinforcing, positive-sum game, fair & remunerative ecosystem**! Antfarm has been designed so that any taker in the platform would end up better off than when they walked in. **And this statement is particularly true for the first risk-takers, Antfarm's AGT investors.** Antfarm's investors will be involved through the most transparent governance that exist, a Decentralized Autonomous Organization (**DAO**). They will be part of the decision mechanisms and they will be financially compensated for the success of their decisions. Investors will participate to all decisions thanks to a dedicated token, the Antfarm Governance Token (**AGT**), which will bring them power and value. Trusting Antfarm right from the start might bring investors the most return, but Antfarm also welcomes late adopters who will not want to miss out on the AGT power and value!
How to get AGT? When launching the protocol, the DAO will run two programs to share AGT with its users, the ATF staking program (that will last for 12 months) and the Liquidity Mining program (36 months) and respectively sharing 1.5M and 2M AGT (35% of the total supply). Anyone will also be able to join the governance by purchasing AGT directly on Antfarm's ATF/AGT pools
What will investors be able to do with AGT? * AGT will give investors the possibility to get veAGT and participate in the governance of the platform. * AGT will bear a strong value as the platform grows. The DAO will share its profit with veAGT token holders, so the more successful the platform, the better off its investors.
What is veAGT? veAGT is the vote escrowed token that any AGT staker will receive, it is the governance token of the DAO. The DAO will share a portion of its profits with the veAGT holders pro-rata to their stake as a reward. Anyone can stake AGT to get veAGT, but any deposit or reward claim will restart the time delta (28 days at launch) before the AGT can be withdraw. *NB: When withdrawing AGT, any cumulated reward since the last claim will be split among veAGT holders.*
# Missions A DAO to complete and protect the whole ecosystem. The mission of the DAO is to **protect the Antfarm protocol** and **take the right decisions** to help develop the ecosystem. Antfarm DAO consists of multiple Smart Contract to manage its governance. Antfarm's DAO was built to be collective, transparent, resilient, fair and self-reinforcing.
Why use a DAO? Antfarm chose to support the protocol via a Decentralized Autonomous Organization as it allows Antfarm to work directly with investors globally while maintaining transparency and its protocol. Everyone is in charge; everyone profits, and everyone promotes the organization. That’s what a DAO is about.
#### Split of the funding The initial liquidity (*and future profits*) will be used as follow: * Pooled on Oracle pools (fee 1% - against WETH, USDC, USDT, WBTC) to settle ATF pricing. * Pooled on for-profit pools (fee 10%, 25%, 50%, 100%, ...). * Deploy the protocol on several chains (Ethereum, *Avalanche, BNB Chain, L2s etc*). * Marketing and incentive new projects to deploy liquidity on Antfarm. * Elaborate innovative products that use the same utility token. *NB: All actions will require a proposal to be voted by the DAO.* #### Generate profits and reinvest to make sure Antfarm's TVL increases One of the mission of the DAO is to ensure the growth of the platform. As such, the profits incurred by the DAO will be partially reinvested in all pools to make sure the total TVL increase and more profit are created in the future! {% hint style="success" %} **The more the liquidity the more the volume.** Increasing the liquidity will increase the amount of ATF burned, bringing real value to all stakeholders of Antfarm ecosystem. {% endhint %} #### Expand the ecosystem Antfarm has so much to offer to all stakeholders! And the more is built on Antfarm, the more everyone benefit from it. It is thus Antfarm's responsibility towards token holders to expand the ecosystem of the DAO. {% hint style="success" %} Antfarm's users can benefit from new tools and products, creators can host their new projects on Antfarm, or even Antfarm protocol could be deployed to other chains. {% endhint %} {% content-ref url="/pages/9hDZaKVOeRdV6o55NjbV" %} [Project Owners](/stakeholders/project-owners) {% endcontent-ref %} # DAO overview The loop that brings growth and value to its participants
# Governance Overview of Antfarm's governance system Antfarm Governance is the **core concept** of the Antfarm Ecosystem and the reason of existence of the DAO. The Antfarm Governance is open to anyone who wants to contribute to the Antfarm ecosystem. **It is built to be fair, transparent and collaborative**. Participants will, together, create new platform features, participate in the shaping of the platform in the future, and contribute to its overall success. ### Antfarm Governance Token - AGT Everything starts with the ownership of the Antfarm Governace Token (**AGT**)! AGT make it possible for holders to **take part of the Antfarm's DAO** and to **improve the overall ecosystem**. {% content-ref url="/pages/KqVexyBPiIvjhiVAZBp3" %} [Antfarm Governance Token - AGT](/dao/governance/antfarm-governance-token-agt) {% endcontent-ref %} One of the main missions of the AGT holders is to participate in the democratic governance by voting! To be able to vote on the Antfarm DAO, users need to stake and lock their AGT tokens. This will allow participants to vote on all DAO proposals, while proving their long-term commitment to the growth of the platform. There is a minimum voting power required to create new proposals (to avoid spams), but **not to vote!** ### Voting power **Votes will be available through the use of veAGT**. veAGT stands for Vote-Escrowed AGT. They are given to a participant after they **staked** (and **locked)** their AGT. veAGT are built to **determine the voting power of any participant** within the DAO, granted on a 1:1 basis for any AGT staked. {% hint style="info" %} Antfarm's DAO uses [tally ](https://www.tally.xyz/)for proposals and votes. Investors will find there all current and closed votes. To manage staking and claim their rewards, investors can head up to the Governance tab on [antfarm.finance](https://antfarm.finance/). {% endhint %} ### Protocol rewards Owning AGT is not only about duty, but also about retribution! Participants of the DAO are able to earn ATF collected by the DAO from its **liquidity in Antfarm's pools**. ATF collected by the DAO from the pools are split among veAGT holders and the DAO treasury for further reinvesting. {% hint style="success" %} Profits earned by the DAO from investments in pools is fairly split between veAGT token holders and reinvestment in the Antfarm protocol! A fair balance between immediate retribution and investment in the growth of the platform. {% endhint %} # Antfarm Governance Token - AGT What is the AGT? How can I get my hands on it? How does it work? AGT is the Governance token for the Antfarm ecosystem, it is an **ERC-20** token with a total supply of **10.000.000** tokens. Holding AGT opens many doors within the ecosystem, including the possibility to take part of the Antfarm's DAO and to improve the platform. ### Token allocation Core contributors within the Antfarm ecosystem will initially hold **40% of the total supply**. The long-term goal will be to distribute this portion of AGT across the market to further increase the decentralisation of the DAO. From launch, 35% of the AGT total supply will be shared among liquidity providers trough the Liquidity Mining program and ATF stakers through the ATF Staking Program. The goal of those AGT distribution programs is to incentivize users to invest in the Antfarm ecosystem while **decentralizing the DAO** as much as possible. More about those programs below: {% content-ref url="/pages/qRas3CCHoo30vSWVHloq" %} [Liquidity Mining](/dao/funding-and-incentivized-programs/liquidity-mining) {% endcontent-ref %} {% content-ref url="/pages/rwyANoGlMoy4JUGcJWzM" %} [ATF Staking](/dao/funding-and-incentivized-programs/atf-staking) {% endcontent-ref %} Collaborators and partners of the Antfarm ecosystem will be rewarded for their work to improve the overall experience and product. The legal association that backs the DAO will hold 10% of the total supply as its treasury to be able to generate revenue and fund necessary services (eg. extra audits). The DAO will keep 5% of the supply to create ATG/AGT pools. * Core contributors : 4.000.000 AGT * Liquidity Mining bonus : 2.000.000 AGT * ATF Staking rewards: 1.500.000 AGT * Antfarm's collaborators: 1.000.000 AGT * Legal association : 1.000.000 AGT * ATF/AGT Pool creation : 500.000 AGT
{% hint style="success" %} The AGT value across the market will increase based on the utilisation of the platform and fees generated from the DAO's liquidity in Antfarm pools. {% endhint %} # Staking & Rewards Why stake AGT for veAGT ? AGT holders can stake & lock their AGT into the Antfarm DAO staking contract to receive veAGT. Staking allows participants to **vote in the Antfarm DAO Governance** and to **claim rewards** based on profits made by the DAO's positions on Antfarm pools. ### Voting Escrowed (veAGT) veAGT determines **the voting power** within the DAO, and participate in shaping the future of the Antfarm ecosystem. **The more AGT are locked, the more veAGT are earned and the more power comes with it.** **veAGT is a non-transferable ERC-20 token**. veAGT is only available after staking and locking your AGT. This is the fairest and more transparent model to keep the community engaged and involved for a better common future. {% hint style="info" %} * The initial lock period is 1 month, renewed when claiming staking rewards * When staking AGT you'll receive veAGT in a 1:1 ratio * Your veAGT will be burned when you unstake your AGT (after the locking period has expired) {% endhint %} ### Staking Rewards Alongside Liquidity Providers, the DAO invests and reinvests liquidity within Antfarm's pools. Thereby, the DAO collects a portion of ATF fees paid from some pool's swaps. {% hint style="info" %} Currently, 82% of the DAO's collected ATF fees are shared among veAGT holders, the remaining 18% are burnt. This means that swaps happening on the Antfarm DAO's liquidity, a total of 29.99% of the swap fees are burnt (15% from the protocol fee, and 18% of the collected 85%). {% endhint %} veAGT holders can claim ATF fees (distributed by the DAO), at any time. The claimable ATF amount is proportional to the AGT amount staked (veAGT owned). {% hint style="warning" %} Anytime you stake more AGT or you claim your rewards, the locked period will be renewed. This is to ensure that users who profit from the protocol can't unstake right away. {% endhint %} You can unstake your AGT after the lock period expired. Unstaking AGT will burn the equal amount of veAGT. {% hint style="success" %} When unstaking, your unclaimed rewards will be redistributed to the remaining veAGT holders, proportionally to the amount you're unstaking. E.g. if you have 1000 ATF in pending rewards and unstake 50% of your veAGT, then 500 ATF will be distributed among all stakers (you'll get a portion back immediately). {% endhint %} ## # Proposal & vote How to use your voting power? Once you have staked your AGT to get veAGT the real deal begins: voting to shape the future of the Antfarm's platform! Antfarm's DAO uses [tally ](https://www.tally.xyz/)for proposals and votes. Members will find there all current and closed votes. {% hint style="info" %} To participate in governance, head to {% endhint %}
Can members of the DAO vote on any proposal? veAGT holders can only vote using their veAGT weight at the block where a proposal was created. Make sure to delegate your voting power (either to yourself or a trusted one) as soon as possible to make sure your voting power counts on every proposer.
How to create a proposal? Voting is only half-way of a real community! Antfarm is also expecting proposals to fuel the DAO and improve the platform. Collective intelligence is so powerful! Any veAGT token-holder can create a proposal, as long as they hold more veAGT than the threshold (actual threshold is set to 4% of the supply).
# Funding and Incentivized Programs How does the DAO fund itself and why ? Once every Smart Contract is deployed, the first priority of the DAO will be to get the Antfarm's platform up and running! This will be done by adding liquidity to Oracle pools as well as in high fee pools to generate long term profit and make sure the DAO can fund any venture by itself. {% content-ref url="/pages/2Zx3BNNoRDCJEBKHCGW0" %} [Oracle pools](/strategy/pools/oracle-pools) {% endcontent-ref %} To fund this liquidity, the DAO will run an ***Initial Sale*** where participants can get 3.000.000 ATF. The *Initial Sale* will initiate the liquidity in different pools, but to really consolidate the ecosystem, the DAO will also be running a ***Linear Sale*** to ensure new capital is available any time the token reach new All Time Highs. # Initial Liquidity Offering (ILO) Start up the ecosystem The Initial Liquidity Offering took place on January 17, 2023, through a Smart Contract on Ethereum and ran for a week. {% hint style="success" %} The protocol raised 158 ETH, worth \~$250,000 at the time of the sale. {% endhint %} During the sale, 3,000,000 ATF tokens were sold, which accounts for 30% of the total supply. The price was fixed based on the total contribution of the participants and was $0.085 at launch. All the funds raised through the Initial Sale have been used to deploy liquidity to ATF pairs. To do so, an additional 3,000,000 ATF tokens were used and paired with quotes below:
Pool FeeWETHUSDCUSDTDAILUSDWBTCTOTAL
1%25%10%5%5%2.5%2.5%50%
10%15%6%21%
25%12.5%4%16.5%
50%10%2.5%12.5%
TOTAL62.5%22.5%5%5%2.5%2.5%-
{% hint style="info" %} The Initial funds raised are owned by the DAO. {% endhint %} # Linear Sale Supporting the ecosystem as it grows Once the liquidity has been deployed with the funds raised from the ILO, the DAO will continue supporting the liquidity of the entire ecosystem. To ensure the sustainability of the ecosystem, it is essential that the liquidity of ATF pools keeps increasing as well. #### The issue when relying only on the initial liquidity In the way Liquidity Pools are designed, the value of its liquidity doesn't grow in correlation with the price but with its square foot: $$ f(x) = √x $$ ​This means that if ATF price increases by 100 fold, the value of the pools will only have increased by 10 times. #### Our solution In order to mitigate those effects, the DAO will run a Linear Sale that will sell ATF tokens at a price based on its reserves, setting the start price at the price of the ILO and the end price to be up to 100 times that price. All the revenues generated from this sale will be added to the DAO treasury and used, according to its missions, to deploy more liquidity or deploy the protocol to other chains. The Linear Sale will be funded with 1.000.000 ATF (10% of the total supply) and will run until it is empty, this would happen whenever the price on the secondary market reaches 100+ times the initial price. This sale acts as an inflationary mechanism. It would only be triggered when the demand is high and that the price keeps reaching new highs. # Liquidity Mining Incentivize users to bring liquidity ### Objective The main goal of the Liquidity Mining (LM) program is to reward users or entities who bring liquidity on Antfarm's ecosystem. As Antfarm lets users create liquidity on very high fee pools, users could find loopholes by locking liquidity (for example stable-coins) on 100% fee pools in orders to get rewarded. {% hint style="info" %} The program will reward users' liquidity that has been actually used, rewarding them based on the amount of fees generated (but unclaimed yet) in their current positions. {% endhint %} Every 4 weeks, LPs will be able to register their Positions to the LM program and will receive a portion of the monthly allocation of **ATF** and **AGT** as a bonus directly on their wallets. The more the ATF unclaimed, the more they'll receive. The program will last for 39 rounds of 4 weeks, approximately 3 years.
{% hint style="info" %} The bonus will be received the next time you register your positions (even if you don't have any to register again). You'll only be able to register your positions once during the same round. {% endhint %} As LPs will only be able to register (claiming the bonus at the same time), they'll have the choice between registering early to receive the bonus earlier but registering Positions with lower ATF claimable or registering late in order to register their positions with a higher amount of ATF claimable (scoring more points for next month) but receiving the bonus later. {% hint style="danger" %} Registering during the first three weeks will reduce the amount of ATF received from the LM program linearly from -50% to 0%. (e.g. if you register after 10 days, you'll only receive approx. 75% of the ATF you should have received). The remaining amount will be burned. The amount of AGT won't be impacted by this slashing. {% endhint %}
The LM program will also incentive regular users that participate in two consecutive months granting a small bonus on top of the amount rewarded. {% hint style="info" %} The LM program can also be called by the Delegate of a position, in that case the bonus will go towards this address. {% endhint %} ### Multipliers In order to distribute the rewards in a fairest way, point multipliers have been added to the program on March 7th 2023 (see [proposal](https://www.tally.xyz/gov/antfarm-dao/proposal/81104976047441190562472076050880968057001228435349102296909102880975067900816)). Points are calculated based on the amount of ATF held by the positions of a user when registering his positions. Every pool has a multiplier that affects the amount of points awarded to a user for a specific round. **This point multiplier will be the sum of two different multipliers:** * A base multiplier set by our multisig in order to be able to increase or decrease a pool multiplier without having to go through proposals. * A community multiplier that can be increased by staking ATF or AGT to increase the multiplier of a specific pair. The community multiplier will be based on the sum of ATF and AGT staked towards a specific pool, the multiplier will be used for any LP of the pool and based on its amount at the moment of the registration.
Level 1MultiplierATF and AGT sum
10 to 10 to 25,000
21 to 225,000 to 75,000
32 to 2.575,000 to 150,000
E.g. Alice is a Liquidity Provider in ATF/ETH 10% pool, the base multiplier has been set to x5 and as there are no ATG nor AGT staked, the global multiplier would be x5. She decides to stake 35,000 AGT in order to increase the pool multiplier: the community multiplier is now x1.2, setting the global multiplier at x6.2 (5 + 1.2). Bob also wants to increase the community multiplier of that pool, he decides to stake 40,000 ATF, setting the new multiplier to x7 (5 + 2). {% hint style="warning" %} When staking or registering, a personal lock will be set to 28 days in order to make sure others can profit as well from the community multiplier. This lock will be set to 28 days anytime new ATF or AGT are staked towards any pair. E.g. Alice stakes ATF for ATF/ETH 10%, her lock will be set to 28 days, some days later, she stakes towards another pool, the lock is set again to 28 days. She'll have to wait 28 days without registering or staking more before being able to unstake her ATF or AGT. {% endhint %} # ATF Staking Stake your ATF and receive AGT In order to distribute the Governance token of Antfarm's DAO and distribute its governance, an ATF staking program has been created. Staking your ATF will let you receive AGT rewards. It'll last for 12 months and will distribute 1.500.000 AGT (15% of the supply). ATF can be staked for any period of time, rewards will accrue over time and can be claimed at any moment. All rewards will be shared pro-rata to the staked amounts. {% hint style="info" %} ATF staked aren't locked, you can get yours at any moment but if you leave no ATF staked your rewards will stop increasing. {% endhint %}

AGT distribution plan

# Antfarming Boost specific pools' rewards with a straightforward farming model The Antfarming program allows anyone to stake their Positions on eligible pools to receive time-based rewards. While staking their Positions, users will be granted rewards, pro-rata to their liquidity. While staking their positions, LPs can still increase their liquidity (a transaction to update the stake will be required) or claim the fees accumulated in it. Also, rewards from the Antfarming program are claimable at any moment and there are no locks whatsoever associated with this program.
# Bridge ATF Bridge ATF from Ethereum to another chain The Antfarm token (ATF) is natively available on Ethereum, and can be bridged on each chain where the Antfarm protocol is deployed (Avalanche, Arbitrum & Polygon zkEVM). You can bridge ATF from Ethereum <> Avalanche using our LayerZero bridge implementation : You can bridge ATF from Ethereum to Arbitrum or Polygon zkEVM through their official bridges : Arbitrum Bridge : Polygon zkEVM Bridge : {% hint style="info" %} ATF (Ethereum address) : [0x518b63Da813D46556FEa041A88b52e3CAa8C16a8](https://etherscan.io/token/0x518b63Da813D46556FEa041A88b52e3CAa8C16a8) {% endhint %} # Antfarm contracts The Antfarm protocol is available on Arbitrum, Ethereum and Polygkon zkEVM [Ethereum](/contracts/antfarm-contracts/ethereum) [Arbitrum](/contracts/antfarm-contracts/arbitrum) [Polygon zkEVM](/contracts/antfarm-contracts/polygon-zkevm) [Avalanche](/contracts/antfarm-contracts/avalanche) # Ethereum Antfarm contracts on Ethereum ## Tokens
ContractAddress
Antfarm Token (ATF)0x518b63Da813D46556FEa041A88b52e3CAa8C16a8
Antfarm Governance Token (AGT)0x0BF43350076F95e0d16120b4D6bdfA1C9D50BDBD
## Protocol
ContractAddress
Factory0xE48AEE124F9933661d4DD3Eb265fA9e153e32CBe
Router0x6D9f0eb21D77C6d24bE49a579508471E937D5418
Position0x9fF19be8FA1F8Cf8a017051DAA5DFB491ac2cCEE
## DAO
ContractAddress
Governor0xD63123527551F037fAAc74bf5fDA5B71569cf5af
Timelock0x529C78Ee582e4293a20Ab60c848506eADd8723D8
veAGT 0xDCd2B58585DF999DD145e529f09e8ACaFA6cd244
Position Manager0xEe8c1c668d533d38db792dEEB35898fe8d3A33B1
## External
Inititial Liquidity Offering0x1b0470Fc8b495Dd39E40cBF4cD00e4095db65213
ATF Staking0x6142b36B3dD1812993C2ecaa300b962A7Da0A900
# Avalanche Antfarm contracts on Polygon zkEVM | Contract | Address | | ------------------- | --------------------------------------------------------------------------------------------------------------------------------- | | Antfarm Token (ATF) | [0x8aF94528FBE3c4C148523E7aAD48BcEbcC0A71d7](https://snowtrace.io/token/0x8aF94528FBE3c4C148523E7aAD48BcEbcC0A71d7?chainId=43114) | | Factory | [0xDC0BD72CdeF330786BF6f331a6Aca539c0bb4EaB](https://snowtrace.io/address/0xDC0BD72CdeF330786BF6f331a6Aca539c0bb4EaB) | | Position | [0xf766Bf42B57De7DfD0e60DdAFa9e6669B7EcBEDe](https://snowtrace.io/address/0xf766Bf42B57De7DfD0e60DdAFa9e6669B7EcBEDe) | | Router | [0xD999Fb911d899842820fA96F2B7CDCe71a4F0FD5](https://snowtrace.io/address/0xD999Fb911d899842820fA96F2B7CDCe71a4F0FD5) | # Arbitrum Antfarm contracts on Arbitrum ## Protocol
ContractAddress
Antfarm Token (ATF)0xFB9fbcB328317123f5275CDA30b6589d5841216B
Factory0x61f4ECD130291e5D5D7809A112f9F9081b8Ed3A5
Router0x1272BA8C0BD855Ff15C4B29bAD660E6F154Fca28
Position0x15b1954FabFf96f7e9231A7CA3976595095537B5
# Polygon zkEVM Antfarm contracts on Polygon zkEVM
ContractAddress
Antfarm Token (ATF)0x40DF0C3BBAAE5Ea3A509d8F2aa9E086776C98E6c
Factory0x8aF94528FBE3c4C148523E7aAD48BcEbcC0A71d7
Router0x61f4ECD130291e5D5D7809A112f9F9081b8Ed3A5
Position0xdbb6B9d1890155B9B641942D4d3f73CF66dcFc83