Don-key Finance Sponsored Farms FAQ

Continuing to push the barriers of what is believed to be possible in DeFi, with its new Sponsored Farms, Don-key Finance is now the only yield farming protocol to offer guaranteed weekly APR.

Given that Sponsored Farms breach new territory, the below numbered questions are meant to address any lingering uncertainty that the community may have.

  1. What are Sponsored Farms? Sponsored Farms allow investors to deposit single assets and farm them for a guaranteed weekly return.

Differences Between Sponsored Farms and Community Farms

Rewards and Compounding
In Sponsored Farms the rewards are in $DON, while Community Farms offer rewards in the deposited native token.
While there is no benefit to harvesting rewards and reinvesting them in Community Farms, investors can actually earn additional income by manually harvesting and reinvesting in Sponsored Farms. By doing so, they are compounding extra $DON rewards (on top of the already compounding native token yield) and therefore earn extra yield.
The advertised guaranteed APR does not account for additional income earned via harvesting profits and reinvesting them manually.

APR (Annual Percentage Rate) vs APY(Annual Percentage Yield)
In Sponsored Farms investors earn a guaranteed APR that changes minimally week to week, as strategy yield varies over the course of time. The APR guarantees a rate of return applicable to the week but measured in annual metrics. This means that the APR given tells the investor what they would earn in the year if the APR was constant for the duration of the year — without accounting for compounding. It’s one of two common tools used by investors to assess a farm’s potential profitability.
Community Farms, on the other hand, display returns in terms of APY, which is a projected forecast that factors in long term compounding.

Impermanent Loss
Sponsored pools have absolutely no risk of impairment loss. Investors will get the exact return guaranteed each week. However, Community Farms vary in their exposure to impairment loss, running the spectrum from no risk to high risk.

Join Sponsored Farms

If you’d like to enjoy guaranteed weekly yield farming rewards, simply stake $DON according to the tiers listed above and join one of the Sponsored $CAKE, $WBNB, or $BUSD farms listed at the top of the Dapp, linked here.

To buy $DON, click here.

To stake $DON, click here.

About Don-key Finance is building the first social trading platform for yield farming, bringing together liquidity providers and yield farmers alike. For this reason, the community refers to Don-key as the eToro of Yield Farming, which is a title the team embraces wholeheartedly.

The goal of the platform is to eliminate yield farming’s infamous complexity and replace it with a seamless retail experience, streamlined to offer the most profitable and adaptive product on the market.

With just one-click users can route their liquidity — in whichever token they chose — through professionally designed strategies that are updated to chase the highest available APY while minimizing risk.

Competitive Yield Farming is a full-time job; Don-key does it, so you don’t have to.

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