Question related to providing liquidity and farming

I am new to farming and LP world. I would basically like to know what is difference between providing liquidity and farming any pair.

I am also confused with the UNI pair which is shown when someone provides liquidity
With my example, I have added liquidity with 49 xDai and around 84 PRTCLE

What does 63.64 value in this liquidity represents? Are those numbers of token I am suppose to get after I close liquidity? If yes, are those 63 PRTCLE token or xDai token?

Thanks in advance for clearing doubts :slight_smile:

check this - Honeycomb: how to stake and farm tutorial, benefits and risks

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That 63.64 is your LP token

Providing liquidity will only earn you transaction fee, while farming will earn you both the fee and the hny token.

It shows UNI because honeyswap is a fork if uniswap.

The 63.64 is the total number of pool token. When you add liquidity this token are minted in exchange for the 2 token you deposit.

I don’t want to be too pedantic, but it is not the transaction fee you earn as an LP provider, it is the swapping fee (0.3% of the swap). The distinction is important because I know some people get the impression that the fees liquidity providers get on xDai are lower because the transaction fees are lower, but this is not true.


Thanks for correcting @onbjerg,that’s really what I mean. I was just typing fast and I subconsciously type transaction instead of trade fees. :face_with_hand_over_mouth:

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They are liquidity provider tokens, they represent your share of the liquidity pool for a chosen pair and are used to distribute swapping fees to all liquidity providers. Each honeyswap pair has its own unique liquidity provider token even they’re all displayed as UNI-V2.
The quantity of LP you get when providing liquidity to a pool follows this formula:
Where Tokens^Pool is the number of tokens already in the pool (PRTCLE or xDAI) and LP^Pool is the number of LP tokens associated with the pair (you can get the value by going the contract details on blockscout).