FarmBit Pool is an open marketplace for businesses that lets users put their assets to work and earn stable yields in stable coins.

As a DeFi 2.0 protocol, we solve financial challenges faced by small businesses from developing countries.

To participate, users must hold a minimum amount of FMB tokens. Pools are open for subscription for a determined period, usually less than 3 days. So if you find any interesting pool you want to join, make sure you’re holding the minimum token requirement in your wallet.

Every pool represents a real-world business. By subscribing to any pool, you are directly providing liquidity for that business in return for a share of their profits.

To unsubscribe, you simply have to wait for the asset maturity and click on the "unsubscribe" button on your NFT. You will automatically receive your subscribed FMB tokens and yield in BSUD (Stablecoins). You will be charged a standard unsubscription fee in FMB tokens.

Note: Your tokens will be locked according to the asset maturity. But, you can sell your NFT at any given point, which will allow the new owner of the NFT to claim subscribed tokens and expected yield at asset maturity. This is where FarmBit NFT Marketplace comes in handy. It should be ready by the second quarter of 2022, in accordance with our roadmap.

FarmBit Pool allows businesses from developing countries to trade their assets, trade invoices, warehouse receipts, real-estate loans, and lots more to create a pool of their assets and offer it to DeFi investors. These assets create a stable yield for DeFi investors.

Investors can subscribe to businesses with their FMB tokens to earn stable coins. The number of tokens you earn is relative to the number of FMB tokens you subscribe to the pool. This is to ensure all participating users stand a fair and equal opportunity to share in the interest provided by these businesses.

The FarmBit Pool platform comprises three features: Subscription, Pool Receipt (NFTs), and Unsubscription.

FarmBit is an open marketplace that helps businesses to obtain working capital by discounting their trade invoices to investors, who are willing to advance funds and take exposure to this new asset class and earn stable yield.

On the one hand, we serve businesses of different sizes from Africa covering suppliers, manufacturers, and retailers.

This we do by checking some numbers of variables such as the relationship between the buyer and the seller, and the creditworthiness of the buyer.

Then we place the trade receivables in form of an NFT for investors to put their digital assets to work and earn stable yields in stable coins.

At FarmBit, the most important thing we look at is the existing relationship between the buyer and the seller by leveraging blockchain technology to ensure legitimacy unlike traditional lenders, for example, banks.

Traditional lenders look at the creditworthiness of the seller only, we look further into the existing relationship between the seller and the buyer.

On average, invoices last for 58 days on the FarmBit platform.

This document is a resource for the FarmBit community.

Explore these links to learn about FarmBit Pool and its yield structure.

• DApp: https://farmbit.io/app

• Github: https://github.com/FarmbitDev

• Twitter: https://twitter.com/farmbit_io

• Medium: https://medium.com/farmbit

• Telegram: https://t.me/farmbit

This section walks you through the process as a subscriber to any pool: from the home page to the pool page, and to the resources that will help you decide whether or not you are ready to subscribe to any pool. After this section, you should be able to do your research (“DYOR”) and confidently subscribe to one of the upcoming FarmBit pools.

Let's start from the very beginning, visit farmbot.io/app. The top banner shows you the total value for all pools but for our purpose, we are only looking at the list of pools that are currently active (1 February 2022).

Each one of these pools is run by an ASSET OWNER. There are currently 3 active pools showing on the list of pools.

You can see the pool details, overview, asset type, APY, asset maturity, pool value, and the current stage of the pool. This will tell you if a pool is open for subscription or closed.

• Asset Type: This is the class of receivables that needs funding.

• Asset Maturity: The maturity date of every pool, this is when invoice payment is due.

• Pool value: This is the value of a pool, which is the maximum amount of funding it needs.

• APY: The annualized rate of return from an investment, factoring in compound interest that accrues or grows with the balance.

Once you subscribe, you will automatically receive an NFT as a receipt representing your subscription to that pool. This NFT holds the value of your subscription and your expected yield. You can choose to sell your NFT at any time.

Unsubscription

To unsubscribe, you simply have to wait for the asset maturity and click on the "unsubscribe" button on your NFT. You will automatically receive your subscribed FMB tokens and yield in BSUD (Stable coins). You will be charged a standard unsubscription fee in FMB tokens.

Note: Your tokens will be locked according to the asset maturity. But, you can sell your NFT at any given point, which will allow the new owner of the NFT to claim subscribed tokens and yield at asset maturity. This is where FarmBit NFT Marketplace comes in handy. It should be ready by the second quarter of 2022, in accordance with our roadmap.

Each pool has a built-in yield calculator that can help you automatically calculate your expected yield.

Once you subscribe, you will automatically receive an NFT as a receipt representing your subscription to that pool. This NFT holds the value of your subscription and your expected yield. You can choose to sell your NFT at any time.

What is APY?

APY is the annualized rate of return from an investment, factoring in compound interest that accrues or grows with the balance. Compound interest includes interest earned from the initial deposit, plus the interest earned on that interest.

Although commonly associated with traditional savings, APY is a crucial metric for subscribing to FarmBit Pool. Investors can earn APY on cryptocurrencies by subscribing them, putting them in the pools via yield farming.

You can quickly get started earning APY on your crypto through DeFi

Typically, investors will earn interest in stable coins.

Simple Interest Rate vs. Annualized Percentage Yield

While APY refers to the projected rate of annual return gained from a pool after accounting for compound interest, a simple interest rate only considers the interest earned on the original deposit. Thus, the main difference is that APY takes into consideration the effects of compounding interest if it applies.

Compounding is a powerful investment tool since it enables you to earn additional income over time. Compound interest is calculated over a certain period, and the added value is added to the balance. With each additional period, the interest paid on the overall balance also increases.

To make it easier to understand, consider subscribing with $1,000 at an interest rate of 12% per annum in January 2021. After one year in January 2022, using a simple interest rate calculation, you’ll receive a total of 1,000 × (1 + 12%) = $1,120.

The same $1,000 staked at 12% per annum, but with biannual compounding of interest in the first six months, will give you 1000 × (1 + 6%) = $1,060, or the total after six months.

After a year, you’ll earn 1,060 × (1+ 6%) = $1,123.60

That extra $3.60 comes from the power of compound interest. Therefore, your annualized percentage yield is the return you’ll receive over the year: $1,123.6 ÷ $1,000 − 1, or 12.36%.

How Does 7-Day APY Work in Crypto?

The 7-day APY is an annualized yield using 7-day returns. It’s calculated by taking the net difference in price from 7 days ago and today and generating an annual percentage.

The formula to calculate 7-day APY is as follows:

APY = (X − Y − Z) ÷ Y × 365/7

Where:

X = the price at the end of the 7-day period

Y = the price at the start of the 7-day period

Z = any fees for the week

This calculated amount helps investors to understand the weekly yield or return.

Does APY Represent Final Earnings?

APY represents your rate of return or the amount of profit or earnings you can make. Depending on the pool duration, your ultimate earnings will differ. The asset maturity period will determine how much you earn.

How to Calculate APY in Crypto

APY measures the rate of return earned annually as a profit on any sum of money or investment after factoring in compounding.

The formula for calculating APY is as follows:

APY = (1 + r/n)ⁿ − 1

Where:

r = periodic rate of return (or annual APR)

n = number of compounding periods each year

The calculation of APY in crypto is the same as it would be in traditional finance, and the goal is similarly to come up with a percentage yield.

The APY is calculated in a simple interest format where the daily yield represents the interest rate that you can earn, depending on the number of tokens you subscribe to a pool.

The formula is as follows:

Daily yield = The number of total tokens subscribed × (Pool APY ÷ 365)

For example, if you’ve subscribed 10,000 FMB for guaranteed APY at 40% in stablecoin, you can collect 10.9 BUSD the next day. The calculation is represented as 10,000 × (0.4 ÷ 365) = 10.9 BUSD.

N.B: Assuming 10,000FMB is equivalent to $10,000 BUSD.

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One Last Example

You have $1000 A and subscribed it in Pool X with $1M pool value and 10% APY.

Pool X puts your asset in a business bX for a specific time ( asset maturity)

Business bX has a trade invoice that entitles them to $1M at some point in the future for product or service rendered. This means your asset will receive $100 at Asset maturity.

Regularly, FarmBit automatically collects or 'harvests' the APY tokens on behalf of our users and exchanges them for more of the underlying assets that users deposited, thereby compounding the interest they earn. This saves our users both time and the network fees associated with making multiple transactions.

The FarmBit team works hard every day to onboard businesses that are most profitable and can bring returns to our users. New businesses are relentlessly evaluated and pursued to increase profitability, scalability and sustainability.

New businesses are evaluated through these stages:

• Analyze business documentations

• Review seller and buyer relation

• Audit business

• Legal process for transfer of trade invoice.

• FarmBit takes care of APY tracking, and strategy development.

Requirements

• Mobile wallet, MetaMask, Trust Wallet, and others.

• No minimum amount is required.

• Step 1: Go to your Web3 Wallet and go to the built-In browser

• Visit farmbit.io/app and click Launch App.

• Connect Wallet and make sure you are connected with the right account where you have your FMB.

• Go to the Pool section and browse through all the available pools.

• Step 2: Select the pool and view pool

• Click the View Pool button.

• When you are ready to subscribe, click the Subscribe button and input FMB tokens or choose Max.

• Step 3: Pool Receipt (NFTs)

Now that you’ve successfully subscribed, you will instantly get the pool's NFT, representing your subscription.

During this phase, users have the option to sell their NFT to anyone or wait till asset maturity to claim tokens and yield. The number of subscribed FMB tokens will determine the number of stable coins to be earned by users from any given pool.

• Step 4: Unsubscribe and Claim Yield

Once the asset maturity has reached, users can unsubscribe their NFT by clicking the Unsubscribe button on the NFT. This will automatically unlock subscribed FMB tokens and yield.

Successful buyers of any NFT from the FarmBit pool will find their purchased NFT in the "My NFTs" section.

The interest-bearing FarmBit NFT, is a deposit receipt token for subscribing to a pool that is compounding the Profit Sharing Pool. It can be obtained by subscribing to a pool.

FarmBit Pool utilizes the same vault architecture as other vaults, collecting FMB from users and then depositing it in aggregate into the Profit Sharing Pool. The advantages include:

• No gas fee for subscribing and unsubscribing, you pay all fees in FMB.

• A fungible and transferrable receipt token, FPR (FarmBit Pool Reciept), allows compounding Profit Sharing shares to be transferred between addresses without first unsubscribing your FPR.

$FMB is the native token on the FarmBit ecosystem. $FMB Tokens are used to reward users for participating in different operations on the network. $FMB holders participate in governance through on-chain voting. Token holders can make decisions to upgrade the protocol, including adding new functionality or amending the fee structure. This includes control over how functions such as risk models, liquidity provision, and reputation for participating entities

$FMB Utility: The $FMB token can be used for FarmBit-specific utilities. Users harvest yields when they subscribe to any pool. As a result, the users of the FarmBit protocol are directly empowered to operate, control, and gain value from the ecosystem.

Transaction Fees: Transaction fees are paid in $FMB by users for document structure, NFT minting, FarmBit financing transactions, and many more functionalities to come.

• Token Name: FarmBit Token

• Token Symbol: FMB

• Blockchain: ERC20, BEP20, POLYGON

• Total Supply: 200 Million FMB

• Preparation: To be qualified to subscribe, you need to maintain a minimum FMB holding. Wait for the Pool to be opened for subscription, your FMB won’t be locked at this point.

• Subscription: At this point, you can subscribe to the pool. You can choose to commit some or all of your available FMB. The more FMB you subscribe, the higher the probability of earning more BUSD at asset maturity.

• Asset Maturity: When the subscription period ends, your subscribed FMB tokens will enter a pool and will be locked until asset maturity.

• Distribution: Once the asset is matured, the unsubscribe button on your FarmBit NFT will be ready for use. Your locked tokens will be available for you, but you will be charged transaction fees.

The FMB token ($FMB) was launched during an initial dex offering (IDO) in December 2021 and has a maximum supply of 200 million FMB tokens, never to be increased. It offered 30%, or 60 million, FMB tokens to initial investors through the IDO process and completely burnt unsold tokens.

Funds raised during the IDO process were majorly used to provide liquidity on Pancakeswap V2 and also to build the FarmBit platform.

FMB is initially on the Binance Smart Chain network but will interoperate with Ethereum, Polygon, Cadano , and other networks.

To keep the crops secure, you must invest in fences. The FarmBit will budget (3% of supply) to be used to ensure that FarmBit pools are audited and secure.

We acquired an audit from Techrate which should assure our farmers that their crops are safe and bread for the people will be produced, no matter what the future brings. We will continue to require more audits by different companies.

The best places to buy FARM:

• PancakeSwap

• FarmBit Bridge (coming soon), where you buy FMB with your local currency

• And more listings are coming soon!

At FarmBit, our values are what we value. We look out for these traits in our skills and our hire.… this means we hire, promote and reward people who demonstrate, embody and value these five traits.

Read more about the culture of FarmBit HERE.

FarmBit is a decentralized autonomous organization (DAO) governed by $FMB token holders using three smart contracts: FarmBit Token Smart Contract, Governance Smart Contract, and FarmBit Pool Smart Contract. These smart contracts allow the FarmBit community to propose new features, vote, and execute approved proposals.

$FMB token holders have control over the FarmBit Protocol. They participate in on-chain voting and have the ability to make decisions regarding fees and future upgrades. They can regulate functionalities on the FarmBit Pool and the reputation of participating entities.

These proposals include participating entities, Interest rates, default charges, withdrawal charges, and $FMB rewards. The FarmBit community can submit their votes during a voting period. After the majority vote is decided for the proposal, it is queued in the Time lock contract and can be implemented

The Basics