# Farms
We came up with a unique way of incentivising liquidity, while rewarding our LP providers in a deflationary, highly lucrative way: our liquidity farm!
Here's how the farms work:
You lock S-WETH LP tokens for anywhere between 3 and 90 days. The longer you lock, the higher the amount of receipt tokens you get per LP token staked. E.g. locking for 90 days gives you 10x the amount of receipt tokens compared to locking for only 3 days.
Now every time a sell occurs in the pair, there is a substantial amount of tokens removed from the pool, currently 33% of the tokens in the LP pool per day. Half of those tokens are burned and removed from circulation forever, the other half goes to LP stakers in our farm.
There, they are rewarded to our loyal LP stakers based on the amount of receipt tokens they have. At any point, you can start vesting the rewards that are pending, which starts a 7 day timer, after which you can withdraw the full amount. Alternatively, you can also claim early with a penalty of 50%. Part of that early withdrawal penalty is going directly back to the pool, to reward stakers and increase their APR even further. That means for every person withdrawing early, the APR increases and makes vesting more attractive.
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