# What are yield farms

Taraswap is using The [Uniswap v3-staker](https://github.com/taraswap/v3-staker-vested) module to incentivise LPers.

### What is the Uniswap v3-staker module

The Uniswap v3-staker module is a tool that incentivizes liquidity providers (LPs) to add liquidity to specific Uniswap v3 pools by offering additional rewards on top of trading fees. 

#### Tl;dr

**What is the v3-staker Module?**

• It’s a liquidity mining program designed for **Uniswap v3**.

• **Projects** can create **incentive campaigns to reward LPs who provide liquidity** to certain pools.

• **Rewards are distributed in the form of tokens** (e.g., a project’s native token or stablecoins), directly on-chain.

### Why is it good for LPs and the whole market

**1. Earn Extra Rewards:**

• In addition to earning trading fees, LPs also get extra rewards from the staking campaign.

• Example: A token project rewards LPs with their token for providing liquidity in an ETH/TOKEN pool.

**2. Boosts Yield:**

• Combining trading fees with staking rewards can significantly increase your overall return on investment (ROI).

**3. Flexibility:**

• You can choose the price range to provide liquidity and still qualify for rewards.

• The module tracks both your liquidity and your active range.

**4. Encourages Participation:**

• New projects often use this to bootstrap liquidity, giving LPs opportunities to earn high rewards early on.

**5. No Lock-Up:**

• Unlike traditional staking, you can adjust or withdraw your liquidity at any time without penalties.

• Rewards are prorated based on the time your liquidity stays active.

##

## Risks to consider

**• Impermanent Loss:** Providing liquidity still carries the risk of impermanent loss. [This](https://support.uniswap.org/hc/en-us/articles/20904453751693-What-is-Impermanent-Loss) article is great to understand IL.

**• Gas Costs:** Adding liquidity, staking, and claiming rewards involve gas fees.

**• Reward Token Volatility:** The additional rewards might lose value if the token price drops.

### FAQ

We have an FAQ page at <https://www.taraswap.app/#/farms/faq> that explains in detail what and why does our Incentive Program add to the liquidity landscape.