Farms/ Investment Strategies:

Farms are the core of Dexponent, each functioning as an independent yield generation strategy. These strategies vary from traditional staking and lending to more advanced approaches like rebalanced index funds and portfolios. Every Farm is deployed as a standalone smart contract designed to support different asset types, whether ERC-20 tokens or native ETH, while ensuring security, transparency, and efficient performance.

When liquidity providers deposit funds, they receive claim tokens in a 1:1 ratio to their deposit. These tokens act as a direct representation of their stake in the underlying asset, allowing for seamless transfers and secondary market liquidity. Additionally, an instant bonus in $DXP is awarded at the time of deposit, calculated using live pricing data from a Uniswap V2 pair, based on a configurable bonus ratio.

Yield is continuously tracked throughout the investment period, and once the maturity period is reached, liquidity providers can claim their accumulated rewards after protocol fees are deducted. The fee rate is dynamically set by the Protocol Master to ensure fair distribution.

For withdrawals, whether upon maturity or an early exit, liquidity providers must burn their claim tokens to redeem their principal. This mechanism ensures that claim tokens always serve as a verifiable claim to the underlying deposit.

This design ensures that, each Farm functions as an independent yield engine, granting liquidity providers clear ownership through claim tokens, rewarding them with market driven bonuses, and safeguarding returns through transparent performance and fee structures. This design aligns incentives across all participants, ensuring a sustainable and high performance ecosystem.