In this document, there will be some terms that readers need to understand to fully grasp the idea of deFarm:
- Farm: Smart-Contract-Based DeFi Vault. It is non-custodial, meaning Managers do not have access to the assets within the Farm. Their role is limited to executing investment actions using permitted dApps and smart contracts to manage the Farm effectively. Importantly, they cannot transfer these assets from the Farm to another address.
- Manager: People who create and manage Farms. Managers can use the liquidity in the managed Farms to actively trade on the Decentralized Exchange partnered with deFarm. Managers can’t withdraw the liquidity in the managed Vaults. The Manager will earn a portion of the profit as a commission fee.
- Liquidity Provider (LP): People who contribute liquidity to farms created by managers. The liquidity will stay within the Vaults’ smart contract and can only be withdrawn by the Liquidity Provider. The Liquidity Provider will earn passive income through the work of the Manager.