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| Learn the fundamentals of The Way of Data Farming 🧑🏫 |
Data Farming 101
Meet your sensei.
What is Data Farming?
Data Farming (DF) is Ocean Protocol's incentive system for curating and publishing valuable assets in the Ocean ecosystem. Participants vote on the Ocean ecosystem assets that they believe are high quality and likely to sell. If they are right, then these Data Farmers get a portion of the sales of these Ocean ecosystem assets they voted on!
(If you are familiar with 'liquidity mining', then you will find that Data Farming is similar but tuned instead for the curation of high quality assets in the Ocean ecosystem.)
What's the difference between Data Farming and Yield Farming?
Unlike yield farming in DeFi, data farming has real intrinsic utility for Ocean Protocol stakeholders: as Data Farmers determine which are the highest quality assets in the Ocean ecosystem to purchase, then the Data Farmers earn active OCEAN rewards when these assets sell. It's this curation of the "best" assets in the Ocean ecosystem that shortens the search times for those looking to shop for assets in the Ocean ecosystem. We also put in place an incentive system for Publishers of assets to gain 2x the rewards in Data Farming, thus driving forward the addition of great assets in the Ocean ecosystem.
Passive and Active Rewards
Every week OCEAN rewards are paid out to Data Farmers in two different ways: passive rewards and active rewards. The two reward functions produce different variable APYs.
Splitting the Pie
Each Data Farming weekly round has a pool of OCEAN rewards, where 50% of the pool is paid out in the form of passive rewards & 50% in the form of active rewards.
| Passive Rewards | Active Rewards |
|---|---|
| 50% | 50% |
What are Passive Rewards?
Passive rewards are the OCEAN rewards paid to Data Farmers just for locking their OCEAN tokens.
To start getting passive rewards, go here.
What are Active Rewards?
Active rewards are OCEAN rewards paid to Data Farmers that allocate their veOCEAN tokens to Ocean ecosystem assets. They're called Active rewards because the amount of rewards relies on the active participation of the Data Farmer to select and allocate veOCEAN to these assets. Active rewards yield depends on the sales of allocated assets. No sales = no rewards, so choose your favorites wisely & then allocate. Always DYOR.
Active rewards are governed and defined by the Reward Function.
To start getting active rewards, go here.
Estimating APY
To estimate your APY effectively, you will need a good understanding of how Passive and Active Rewards work. Therefore you should make sure to complete reading the documentation on Data Farming.
To help you understand Data Farming and APYs a bit better, we have provided a couple of scenarios so you can easily get an overview of how your yield might behave depending on your decisions.