Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
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 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.
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.
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.
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.
Mobile wallet, MetaMask, Trust Wallet, and others.
No minimum amount is required.
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.
Click the View Pool button.
When you are ready to subscribe, click the Subscribe button and input FMB tokens or choose Max.
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.
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.
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.
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.
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.
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%.
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.
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.
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.
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.
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.
Each pool has a built-in yield calculator that can help you automatically calculate your expected yield.
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.
