# Yield Farming

Yield Farms allow users to earn GOL while supporting GolSwap by staking GLP Tokens.

Check out our [How to Use Farms guide](/golfinance/protocol/golfarm/how-to-use-farms.md) to get started with farming.​

Yield farming can give better rewards than Staking Pools, but it comes with a risk of **Impermanent Loss**. It’s not as scary as it sounds, but it is worth learning about the concept before you get started.

Check out this great [article about Impermanent Loss](https://academy.binance.com/en/articles/impermanent-loss-explained).

## Reward calculations <a href="#reward-calculations" id="reward-calculations"></a>

Yield Farm APR calculation includes both the rewards earned through providing liquidity and rewards earned staking GLP Tokens in the Farm.

Previously, rewards earned by GLP Token-holders generated from trading fees were not included in Farm APR calculations. APR calculations now include these rewards, and better reflect the expected APR for Farm pairs.

Below is a basic explanation of how APR is calculated.

(PIC)

In the image above of the GOL/USDT pair, we see these values:

**Liquidity:** $387.42M **Volume 24H:** $96.97M **Volume 7D:** 709.73M

To calculate the APR, first we take the 24hour volume, $96,970,000, and calculate the fee-share of GLP-holders, 0.2% \[**$96,970,000\*0.2/100 = $193,940]**.

Next, we estimate the yearly fees based on the 24h volume \[**$193,940\*365 = $70.,788,100**].

Now we can calculate the fee APR with yearly fees divided by liquidity \[(**$70.,788,100/$387,420,000)\*100 = 18.27%**]

With the fee APR, we can add the fee APR (15.53%) and the Farm staking APR (20.08%) to get the new total APR \[**8.27%+20.08% = 35.61%**].


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