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What Is Liquid Farming?

19.01.2026
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Imagine that you want to take part in Yield Farming.

  • You give assets X and Y, in return you receive asset Z (liquidity provider (LP) tokens);
  • You stake your LP
  • You get some yield, but note high volatility and DeFI’s risks.

    • But what if you need to move your assets due to security threats or for any other reason? You’ll need to unstake them, but then you will lose your rewards.

    Is there an option?

    Envelop's Liquid NFT Farming (Farming 2.0)

    How to Turn Locked Yields into Liquid Assets?

    Liquid Farming or Farming2.0 is a new type of DeFi Lego where the owner stake its ERC-20 tokens and gets them back in the form of wrapped NFT (wNFT).

    wNFT contain the collateral with all staked & farmed tokens and all the conditions as staking time, APY etc.

    wNFT is fully compatible with the ERC-721 standard and can also be transferred or traded on marketplaces.

    Envelop’s farming lets you sell your entire farming position, both collateral and future rewards anytime on any NFT marketplace. No more stuck LP tokens!

    Farming nft comparision

    This approach can be used to create more complex cases. When a network of partners joins together and adds several different tokens to the collateral of such an aggregating farming NFT. It turns out such a “multi-farming NFT”, which can still be sold or gifted in one transaction. In this case, you save a fee and transfer your entire portfolio (or you can think of it as an index) of farming tokens.

    Plug-and-Play Tradable Yields

    Envelop’s Liquid Farming is the #1 no code white-label tool letting projects turn locked farming into instantly sellable NFTs.

    Why Projects Love Envelop Liquid Farming

    • Token dump risk reduction. The more tokens in the farm, the less risk of token price dumping.
    • Plug-and-Play Tradable YieldsTradable Yields: Launch your own branded farming pool in EVM-chains
    • Tradable Positions containing:
      • Locked tokens
      • Full future APY
      • Vesting schedule
      • Multi-royalty splits
    • Sell Anytime: p2p, OTC, marketplaces
    • Easy rebalance
    • No APY and transactional losses
    • Simplicity: no need in LP-tokens

      • Example of white label implementation for Shark Race:

      https://sharkrace.envelop.is/#/

      Contract: https://bscscan.com/address/0x40bc52774Dc8D59adf7e893543BDbe7a68a13a8f

      SharkRace farming case

      Who can use liquid farming?

      • start-ups on pre- and post-IDO stages
      • Incubators, accelerators
      • Wallets
      • Launchpads
      • Aggregators
      • portfolio trackers
      • DeFi: AMM, yield platforms
      • community members
      • DAO members
      • Farmers
      • Traders

        • Comparison of Farming and Farming 2.0

        Farming 1.0 vs Farming 2.0 comparision

        How liquid farming works

        Product

        Liquid Farming

        Motivate Your Community with Flexible, Tradable Liquid Farming

        Our Liquid Farming product offers a dynamic way to engage your community by allowing them to lock tokens in farming while maintaining flexibility. With farming positions converted into tradable wNFTs, users can maximize returns without feeling restricted, creating a mutually beneficial scenario for both your project and its supporters.

        Key Features

        Tradable Farming Positions

        Community members can trade their farming positions as wNFTs, giving them the freedom to manage and adjust their investments without being locked in, all while still earning attractive APYs.

        Increased Engagement

        Encourage participation in liquidity farming by offering a flexible, appealing solution that fosters long-term commitment and loyalty to your project.

        No APY Loss

        Users can adjust or exit their farming positions without losing accumulated APY, ensuring flexibility without compromising returns.

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