Farm Bot Basics
With traditional yield farming, users have to acquire an LP token, stake it in a staking rewards contract, and periodically claim rewards. Revo provides "farm bots", that are built on top of staking reward contracts. These farm bots automatically claim rewards, exchange the rewards for new LP tokens, and reinvest them in the staking rewards contract.
There are two primary ways to invest with a Revo farm bot. The first way is more or less identical to how other auto-compounding platforms work. You can deposit LP into the farm bot for the underlying staking rewards contract. As time goes on, you'll earn auto-compounding rewards on your staked LP. At any time, you can withdraw your original LP from the contract, along with any rewards you've earned. While this process of depositing and withdrawing LP works perfectly fine, it's not very beginner-friendly.
The second way to invest into a Revo farm bot is much simpler, and is what makes Revo unique. Shares in a Revo farm bot are tokenized and interest-bearing. The farm bot contracts themselves are also ERC20 tokens. When you deposit LP into a farm bot, as mentioned above, you are given some number of farm bot tokens (what we call Revo Farm Point, or RFP tokens) according to how much LP you've deposited. The moment you deposit your LP and receive RFP, that RFP can be redeemed for the LP you just deposited. As compounding interest does its work, your same amount of RFP will be worth more LP than it previously was.
Since farm bot shares are tokenized, they can be added to liquidity pools just like any other ERC20 token. By creating liquidity pools between RFP tokens and another widely-used token (Revo chooses to use the interest-bearing Moola mcUSD token for this purpose), you can swap almost any ERC20 token for RFP, which makes getting started with auto-compouding yield farming as easy as making a single swap from one of dozens of widely-used tokens. We call this process of swapping to enter an auto-compounding farm "zapping in". Getting out of a yield farming position is as simple as swapping your RFP for whatever ERC20 token you'd like; this is called "zapping out". It's even possible to zap between different RFP tokens for different farms! In order to ensure fair swap prices that reflect the actual value of RFP and any compound interest you've earned, a system of automated arbitrage constantly occurs in the background; we'll touch more on this later.
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