Earning yield on SushiSwap is connected to being a liquidity provider, but it is also different because you earn $SUSHI token rewards. Our yield farms are branded on Sushi as Onsen. You can take a look at the current Onsen pair options at app.sushi.com/yield. There are other yield-bearing instruments, but this tutorial will focus on the Onsen pairs.
When new pools are added to the Onsen, their yields are quite high and as more users enter the yield pairs, the APY balances out, as shown in the screenshot above.
Yield Farming & Onsen 101
Step 1: Head over to sushi.com and enter the app. Step 2: Connect your wallet to SushiSwap (Make sure you have some Ethereum to cover gas fees!). Step 3: You need to add liquidity to the yield farming pair first. You can do so by following the steps in the How to Add/Remove Liquidity section or supply straight on the Yield page. Step 4: Select the farm or Onsen pair you wish to join and deposit your SLP (Sushi Liquidity Provider) tokens into the farm by entering the amount you wish to add or by clicking “Max” and click “Deposit.” Step 5: Approve the relevant fees and start growing your $SUSHI! Farming will happen immediately once the transaction completes.
On sushi.com, you can enter a Permanent Farm or an Onsen yield farm. Onsen pairs are temporary farms that are allocated bonus $SUSHI rewards, through allocation points. Allocation points are allotted based on a number of quantitative and qualitative factors, like sentiment and market capitalization. Usually, the higher the interest rate, in relation to the total value of the farm, means the higher the allocation points.
Please note that $SUSHI rewards no longer have any vesting or lockup period.
Since farming is related to liquidity providing, is it important to note that the same impermanent loss risks are still present.
Exiting Onsen 101
Once a temporary Onsen pair is no longer bearing yield, you will probably want to remove your position.
Step 1: Head over to sushi.com and enter the app. Step 2: Connect your wallet to SushiSwap (make sure you have some Ethereum to cover gas fees!). Step 3: Click the Yield tab and wait for Your Yields to load. Step 4: Select the farm or Onsen pair you wish to no longer participate in and click “Harvest x.xx SUSHI” Step 5: Approve the transaction from your wallet and you’re all set! Note: You can also remove the liquidity position entirely on this page as well.