# How to Use Farms

Farming is an excellent method for earning U2U rewards on GroFi Dex. Farms necessitate staking 2 tokens to provide liquidity and receiving either a liquidity position NFT or LP Tokens. Subsequently, you stake these tokens in the Farm to earn rewards, allowing you to earn U2U while maintaining a position in your other tokens. Yield farming offers potentially higher rewards, but it also carries the risk of **Impermanent Loss**. Understanding this concept is crucial before diving in, but it's not as intimidating as it may seem. ## **Get prepared**

To participate in Farm, you'll need a [liquidity position](/features/exchange/how-to-add-remove-liquidity.md). Farms only accept liquidity positions from their specific trading pair with the chosen fee tier. For instance, the U2U-USDT 0.05% Farm exclusively accepts U2U-USDT liquidity positions with the 0.05% fee tier selected. It will not accept: * Other pairs, like U2U-USDT. * Same pair but with other fee tiers: like U2U-USDT with a 1% fee rate. To obtain the precise LP position, you must provide liquidity for that trading pair with the correct fee rate selected. For example, to acquire U2U-USDT 0.05% LP positions, you must first provide liquidity for U2U-USDT pair with the 0.05% fee tier selected. While it might seem daunting, it's not overly complex. Let's break it down step by step. ## **Locate your Farm**

Before moving forward, take a moment to select a Farm that suits your needs. Visit [Farms page](https://testnet.grofidex.io/farms) to view the available options. You can choose a different sorting option, such as by APR, to prioritize Farms with the highest current reward rates. It's important to note that APRs are calculated globally for individual positions and may vary based on their price range settings. When you find a Farm you'd like to use, make a note of the trading pair and its fee rate, such as U2U-USDT and 0.05%, for future reference. ## **Provide liquidity to create a position** Now that you've identified a Farm to stake in, the next step is to provide liquidity: **Step 1:** If you don’t have any position available, you'll encounter an "Add Liquidity" button. Simply click it to open the "Add Liquidity" window without navigating away from the Farm page.

**Step 2:** Another option is to click on the row of the chosen Farm from the list, which expands to provide more details. In card view, click “Details” to expand for additional information. Within this detailed section, click the “Add XXX-YYY LP” link to add liquidity.

## **Stake your positions into a farm**

After completing the liquidity addition process, your position should be listed under the farm you've selected to use. If you have multiple positions, you can click “View All” to see them displayed in a new pop-up window.

Select “Stake” next to the listed position, and your wallet will prompt you to confirm the action.

After that, the window will close, and you'll find your staked position detailed in the interface. You can follow the same steps above to efficiently stake multiple positions with varying price range configurations. Each position will earn U2U rewards and must be harvested individually. ## **Harvest farming rewards** In the Farm, you can stake multiple positions simultaneously. Each staked position will earn U2U rewards and must be harvested individually.

Select “Harvest” on the position, and your wallet will prompt you to confirm. After a brief wait, the U2U rewards will be transferred to your wallet. ## **Add or remove liquidity while staking in a farm** While participating in Farm, you retain the ability to add or remove liquidity without the need to unstake from the farm.

Click on the position title containing the token pair, fee rate, and position ID, followed by the “>” arrow. This will navigate you to the position detail page.

Adjust the liquidity in the staked position by using the “Add” or “Remove” button. Keep in mind that any unclaimed U2U rewards will be harvested and sent to your wallet when adjusting your position. ## **Unstake your positions from Farm** You have the option to unstake a position at any time. To unstake, navigate back to the Farm page and find the farm and position you wish to unstake. You can utilize the “Staked Only” toggle to efficiently filter the farms where you currently have stakes. If you have multiple staked positions, you can click “View All” to see them displayed in a new pop-up window.

Select “Unstake” for the position, and your wallet will prompt you to confirm. After a brief wait, your position NFT will be returned to your wallet, along with any pending U2U rewards. ## Should I harvest my rewards? The frequency of harvesting your rewards is at your discretion, though it's important to note that there is a small fee associated with each harvest. You can view this fee in your wallet when confirming the harvest after clicking 'Harvest'.

This displays the harvesting fee as it appears in the MetaMask wallet. Note that various wallets may present this information differently. It's advisable to allow your rewards to accumulate for a period to minimize the frequency of fee payments. --- # 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://docs.grofidex.io/features/yield-farming/how-to-use-farms.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.