# 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.


---

# 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.taraswap.info/docs/yield-farming/what-are-yield-farms.md?ask=<question>
```

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.