# 🟑 Chapter 5 β€” Yield Farming Basics {% embed url="" %} *** ### How it works 1. Add liquidity to a pool (Chapter 2) 2. You receive LP tokens representing your share of that pool 3. Stake those LP tokens in a SuiDex Farm 4. Earn Victory rewards as long as your LP is staked *** ### Types of farming on SuiDex * LP Farming – Stake LP tokens for Victory rewards * Single Staking – Stake Victory directly for yield *** ### Rewards & Fees * Trading Fees – LPs earn 0.015% of every swap in their pool * Victory Rewards – Extra emissions for farm stakers * Deposit Fee – When entering and exiting a farm pool, a small % is taken. This goes to the SuiDex treasury and community incentives. 40% is rewarded to Victory Single stakers. 40% buys and burns Suitrump Token. 20% is sent to the SuiDex Treasury. * Auto-compounding – Your earned fees increase your share automatically inside your pooled assets/ ### What to know before farming * Impermanent Loss – LP values can shift as token prices change * Rewards – Paid in Victory, which you can hold, stake, or sell * Auto-compounding – Pool fees are added back automatically, growing your position πŸ’‘ Tip: Start with a small LP deposit to see how it feels. Once you’re confident, you can scale up. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://suidex.gitbook.io/suidex/suidex-strategies/chapter-5-yield-farming-basics.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.