The first farming contracts for Uniswap V3 on Covenants are now live.
These are the first-ever farming contracts available to everyone on Uniswap V3, and have been designed to be as safe, efficient and customizable as possible.
Each contract can contain one or more setups. A setup is a single Uniswap V3 pool, with its own NFT, in which multiple farmers can stake liquidity and be rewarded.
Uniswap V3 farming contract innovations on Covenants
The key innovation is to allow several farmers to participate in a single NFT, and offers some advantages.
In this way projects can adapt the right price curves to their respective liquidity needs, farming is cheaper, farmers do not have to mint NFTs to add liquidity, and trading is cheaper. To achieve this, every time a trade takes place on V3, every NFT linked to the pair is activated, with a cost. So with fewer NFTs linked to a pair, trading is cheaper, so adding liquidity with this new system is cheaper than adding liquidity directly through Uniswap, according to the creators.
Set-ups can be customized with any price curve range, or the diluted curve model can be used automatically.
In addition, with these new contracts, commissions earned by liquidity providers in Uniswap V3 can also be taken by farmers in the same NFT, and when a farmer collects the premiums earned, he also collects the commissions.
Any wallet can host one of these contracts, including DAO, DFO, and the host can add new configurations, change their functionality and even disable them.
Thanks to the extension it is possible to customize a farming contract ensuring a high level of security for both hosts and farmers, acting as a reliable intermediary between them and preventing hosts from stealing from farmers.
These ‘Covenant farming contracts’ are distributed by the Farming Factory, which means they all have the same basic features and level of security. In addition, projects cannot customize them by adding vulnerabilities, so farmers can rest easy knowing that they can never be exploited in any way.
Complete documentation for developers has also been published in the so-called Covenant Grimoire Volume 2, with structured, in-depth, technical explanations and examples.
From block 12697000 onwards, the governance tokens of the three ethOS protocols will be “farmable” on Uniswap V3 via the Covenants dApp. In addition, the Covenants stablecoin, Wrapped USD (WUSD), is now farmable on Uniswap V3.