# Animal Farm Frequently Asked Questions

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# Animal Farm FAQs

No one, or rather no company in the traditional sense. All interactions are governed by the smart contract in the Binance Smart BlockChain. It's an innovative way to think about decentralized finance.

Not a unilateral decision, success is determined by users, which are already hundreds of thousands.

Innovation, marketing and new dynamics are entrusted to the development team.

Find out who is part of it here:

TEAM
../../../team/

AFD= ANIMAL FARM DOGS OR simply DOGS

AFP= ANIMAL FARM PIGS OR simply PIGS

Yield farming is one of the hottest trends in decentralized finance (DeFi).

It is a process where you stake or lend your crypto assets to earn high profits in the form of additional cryptocurrencies, in this case AFP (PIGS) and AFD (DOGS) on the native side, but also dividends in BNB & BUSD, which makes it completely unique in this field.

Binance Academy: Yield Farming
https://academy.binance.com/en/articles/what-is-yield-farming-in-decentralized-finance-defi

Like any Yield Farm, Animal Farm has income from deposit fees into the various pools, but there is much more than meets the eye.

โ€‹Animal Farm earns 30-40% APY by lending all non-native staked assets to Pancake Swap with a so-called collateral rehypothecation.

This ensures that tens of millions are paid out to governance stakers within the farm every month.

With dynamic issuance built in, Animal Farm has variable APRs depending on whether demand for the token is high or low at any given time.

With all the incentives for securing native tokens and limited selling pressure, this ensures that demand for native Animal Farm assets remains high over the long term.

The key objective is to buy or farm as many AFP & AFD as possible and stake them in order to benefit from both BUSD & BNB dividends, without the need to sell your underlying assets. Stake stablecoin or Alts in the farms and pools to earn DOGS. Stake the DOGS to earn PIGS. Stake the PIGS to earn BUSD. Build your farm and live off the BUSD dividends.

Emissions are the rate at which new tokens are minted by the contract to pay rewards to Farmers.

Because tokens are dynamic, the rate at which they are minted and burned can change under different market conditions. If demand for PIGS is high and demand for DOGS is low, then more PIGS and less DOGS will be minted.

Less PIGS will be burned and more DOGS will be burned. This helps regulate the cycles of supply and demand and provides a more stable equilibrium.

With a small budget you should be thinking about Farming your rewards.

Consider staking some altcoins or some stablecoins to earn DOGS.

Build up the DOGS in the DOG POUND and earn BNB, let the Auto Compounding pool contract sell the BNB for DOGS/WBNB LP to stake in the Farm to earn PIGS.

Stake the PIGS in the PIG PEN to earn BUSD.

Use the BUSD to expand your farm.

Non-native Farms & Pools have deposit fees and withdrawal fees attached, these are 2% in/out for Farms and 3% in/out for Pools.ย 

Except for non-native DRIP/BUSD farm which fees are the lowest, these are 1% in and 2% out.

FARMS&POOLS TAX EXPLAINED
/en/af/farmspools/#farmspools-tax-explained

Some of these fees feed the PIG PEN stakers their BUSD dividends, some are used for marketing.

The most part of the DRIP/BUSD fees goes to the Drip Faucet dividend vault.

The Animal Farm is an evolving protocol.

A DOGS and a PIGS game have already been developed and are ready for immediate roll out.

In the very near future there will be DOGS and PIGS scratch tickets.

Vaults will be added to offer further incentive to PIGS & DOGS stakers.

Lending is also on the horizon for DRIP.

Will this find its way into Animal Farm? Who knows, but there are possibilities for further implementation over time, ensuring longevity in the future.

At the bottom of the 'Farms' tab there's a link:

Referral links for DRIP GARDEN & PIGGY BANK can be found under their respective tabs.

# Farms&Pools FAQs

A Pool is for single asset tokens only, they are considered the least risky, and therefore generally pay less rewards than Farms.

A Farm is for LP tokens, which you create on Pancake Swap to become a Liquidity Provider.

Binance Academy: what are liquidity pool lp.
https://academy.binance.com/en/articles/what-are-liquidity-pool-lp-tokens

Farms have a number of advantages, but also carry added risk in some cases. In a bull cycle, with all tokens headed up, it's reasonable to believe that such LPs as CAKE/BNB will move up almost identically, adding extra value to the LP and thus more farming power.

However, if two paired tokens both fall, the farm power is reduced. To offset this you may opt for an Alt paired with a Stablecoin, or in a market downturn a stablecoin LP such as BUSD/USDC, which don't alter in value.

CORE refers to the main attraction to the Animal Farm, there are 2 CORE farms:

  • DOGS/BUSD LP native earns AFP
  • DOGS/WBNB LP native earns AFP

These are usually the main attractions with the highest APR.

A Multiplier is the % of reward tokens allocated to a specific Farm or Pool from the total.

As a rule, the higher the number, the more rewards are allocated, but also the densest saturation with the highest TVL and participants, so not always an indication of the best payout.

Deposit and Withdrawal fees are used as incentive for stakers of Native token such as AFP (PIGS) in the PIG PEN.ย 

Currently these are set to 3% in and 3% out for non-native Pools and 2% in/out for non-native Farms, except for non-native DRIP/BUSD farm which fees are the lowest, these are 1% in and 2% out.

Example: This means for every 1000 LP you put into a non-native Farm, 20ย of those go to PIG PEN stakers when you first deposit and a further 19.6 [2% of 980 balance] when you exit.

FARMS&POOLS TAX EXPLAINED
/en/af/farmspools/#farmspools-tax-explained

There are 2 CORE farms:

  • DOGS/BUSD LP earns AFP (PIGS)
  • DOGS/WBNB LP earns AFP (PIGS)

all Pools & Farms that are non-core pay AFD (DOGS) as rewards.

PIG PEN and DOG POUND are slightly different.

You can find more details in their respective section below.

PIG PEN
../pigpen/

DOG POUND
../dogpound/

Impermanent loss only happens with LP tokens and has a few meanings. For the most part it translates to unrealized loss, but it doesn't necessarily mean you lost any dollar value.

This means that you have either lost the token appreciation that you would have gained if you had stayed with a single asset, or it may mean that your token has risen and left its partner behind, meaning that some of the tokens have been sold for the other element of the LP to maintain the 50:50 ratio.

As an example you pair 5 DOGS with $250 of BUSD. When DOGS token price appreciates, and dollars stay still, then despite your LP value increasing, the DOGS will get swapped gradually for BUSD. When you break the LP you may have 4.5 DOGS and $300 of BUSD for example.

LP consists of two tokens. You need to take the total TVL of the Liquidity Pool and divide by the number of LPs in circulation.

A lot of sites do show it as BNB, omitting the 'W'.

The original BNB coin is the native coin of the Binance Chain (BEP2).
That was all that existed for some time, then Binance created the Binance Smart Chain, a completely different chain/network (BEP20).

So to move a Binance coin (BEP2) to another network (BEP20), you need to "wrap" it.

Therefore BNB on the BEP20 chain is "wrapped BNB", or WBNB.
There's a ton more traffic on the BEP20 chain so WBNB is commonly known as just BNB.

Taxes are coded into tokens, and differ from coin to coin. DRIP/BUSD LP has a 10% tax for example, whereas DOGS LP is free to add liquidity and 0% to remove.

Fees are different and are discussed in their own section.

The Dollar value of your stake determines how much you will earn.

If you have $1,000 and APR is 365%, then if you divide the annual 365% by 365 days, you know it is 1% per day and under current conditions it is $10 per day.

In general, with farms: The higher the risk, the fewer participants staked in the farm and the fewer mouths to feed.

Stablecoins are the least risky because the underlying assets maintain a constant value. This in turn attracts many risk-averse investors who all share a piece of the pie.

Usually LP Farms have a higher APY/APR because you take a risk (volatile loss) by pairing two tokens, especially if they are not stable coins.

For this reason you get rewarded more handsomely for it. Additionally, the LP Farms TVL in the Animal Farm can be staked on Pancake Swap for rehypothecation for more earning potential as opposed to single staked pools cannot.

# Dog Pound FAQs

The DOG POUND is a single asset staking pool for AFD token, which pays it's dividends from investors/traders selling DOGS, 2/3 of all sales taxes are paid out to DOG POUND stakers. The DOG POUND also doubles up as a necessity staking pool should you wish to reduce your sell taxes from the maximum 90% to the minimum 6%.

DOG POUND INTRO
../dogpound/

There are no deposit/withdrawal fees in the DOG POUND.

DOG POUND TAX STAKE UNSTAKE CLAIM REWARDS TOKEN LOYALTY SCORE WALLET LOYALTY SCORE
Auto compounding Pool 0% * 0% 0% -1.00% daily -2.00% monthly
Linear Pool 0% * 0% 0% -0.75% daily -2.00% monthly

* A 24-hour withdrawal cooldown is set up for every deposit.

Rewards are paid in BNB, 2/3 of selling taxes are deposited in the rewards vault, which are paid at 3% of the vault value per day.

DOG POUND REWARDS
../dogpound/#rewards

The rewards are paid to the participants according to their share percentage.

The BNB rewards Vault of the DOGPOUND pays 3% per day of the Total Vault balance.

For example, if there is 20.000 BNB in the vault, the calculation is:

20.000 / 100 * 3 = 600 BNB available this day , this is shared between all DOG POUND stakers.

Next we take this number and divide it by the total amount of staked DOGS (Total DOGS Locked).

Lets say there is 150.000 AFD DOGS staked:

600 BNB / 150.000 = 0,004 BNB per AFD staked, per day at the current rate.

There are two options available, the Linear Pool allows you to earn your rewards directly in BNB, or you can earn additional compound interest in PIGS staking your DOGS in the Auto Compounding Pool.

Learn more how:

DOG POUND REWARDS
../dogpound/#rewards

Dog Tax or Token Loyalty is similar to a vesting mechanism, but without restrictions. You are free to sell your DOGS, but you will pay taxes until you have staked in the Pound for some time.ย 

DOGS TAX EXPLAINED
../dogpound/#dogs-tax-explained

The Wallet Tax or Wallet Loyalty Score increases by 2% per month and applies to all your DOG POUND staked tokens, up to a maximum discount of 30%.

WALLET LOYALTY SCORE
../dogpound/#wallet-loyalty-score

Rewards are paid in BNB, if you wish to earn AFP PIGS then you opt for Auto Compounding Pool. Half of your BNB rewards will be swapped for DOGS, paired with the remaining half and then staked in the DOGS/BNB LP Farm to earn AFP PIGS.

AUTO COMPOUNDING POOL
../dogpound/#vesting-mechanic

There is no APR in the DOG POUND as such. You earn your share of 3% of the vault total each day, at the beginning, with high tax brackets of 90%, selling may be minimal and tax revenues minimal. Over time, taxes will become less prohibitive and more selling is likely.

# Pig Pen FAQs

The PIG PEN is the Governance Staking Pool. By staking in the PIG PEN you become an owner of the Animal Farm, and you are rewarded BUSD or AFP dividends, coupled with voting rights for future developments of the farm.

PIG PEN INTRO
../pigpen/

You stake your AFP PIGS in the PIG PEN and each day 3% of the rewards vault is shared between all stakers.

Over time, the reward vault can grow to tens of millions, guaranteeing a steady, daily income.

There are no fees for depositing into or withdrawing from the PIG PEN.ย 

PIG PEN TAX
Deposit AFP PIGS 0%
Withdrawal AFP PIGS 0%
Claim rewards BUSD 0%
Claim rewards AFP PIGS 0%
Compound rewards AFP PIGS 0%

The PIG PEN pays out in BUSD, but also pays AFP PIGS. Half of all deposit and withdrawal fees from PIGGY BANK get injected into the PIG PEN vault to pay stakers additional income.ย 

PIG PEN REWARDS
../pigpen/#rewards

The rewards are paid to the participants according to their ownership percentage.

The BUSD rewards Vault of the PIGPEN pays 3% per day of the Total Vault balance.

For example, if there is 100 million dollars in the BUSD vault, the calculation is:

100.000.000 / 100 * 3 = 3 Million Dollars available this day , this is shared between all PIG PEN stakers.

Next we take this number and divide it by the total amount of staked PIGS (Total PIGS Locked).

Lets say there is 100.000 AFP PIGS staked:

3 Million Dollars / 100.000 = 30$ per AFP staked, per day at the current rate.

The AFP (PIGS) reward vault is no different, paying 3% per day, which is 3% of the Total Vault balance for that 24-hour period.

If there is 50.000 AFP PIGS in the vault, the calculation is:

50.000/ 100 * 3 = 1500 AFP PIGS available this day , this is shared between all PIG PEN stakers.

Lets say there is 100.000 AFP PIGS staked:

1500 AFP PIGS / 100.000 = 0,015 AFP PIGS per AFP-STAKED, per day at the current rate.

The Pig Pen has numerous income streams, Farm&Pool deposit/withdrawal fees, taxes on DOGS, PIGGY BANK deposit/withdrawal fees, Dogs Of Fortune hacker simulation game (TBA), DOGS Roulette (TBA).

PIG PEN DIVIDEND VAULT
../pigpen/#the-new-pig-pens-dividend-vault

To benefit as a participant in the protocol, some commitment is required. Therefore all PIGS are vested and withdrawable at 2% per day, or 100% after 50 days.

PIG PEN VESTING MECHANIC
../pigpen/#vesting-mechanic

There is no APR in the PIG PEN as such. Every day you earn your share of 3% of the total amount of the vault.

Since much of the rewards comes from Collateral Rehypothecation, the income may be minimal at the beginning. Over time, as the farm grows, so will the fruits of the back-end-lending.


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