> For the complete documentation index, see [llms.txt](https://chainpl.gitbook.io/chainpl/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://chainpl.gitbook.io/chainpl/yield-farming.md).

# Yield Farming

#### Yield Farming Process in ChainPL

* **Process Overview**: The left side of ChainPL's flowchart illustrates the yield farming process. This involves users depositing assets into ChainPL Vaults, where they are put to work in yield farming activities.
* **Generation of Yield**: The deposited funds generate yield through various DeFi strategies. These include engaging in liquidity pools and other yield farming opportunities, along with swapping farm rewards back into the principal asset.
* **Fee Mechanism**: A small fee is charged on the compounded rewards, as outlined in ChainPL's Fee Breakdown. The fees are distributed to the harvest caller (the entity triggering the compounding process), the strategist (the individual or entity responsible for deploying the ChainPL Vault), and the Revenue Bridge contracts.

#### Stakeholder Incentives Function

* **Purpose**: This function aims to encourage both technical and non-technical contributions to the development and maintenance of the ChainPL protocol and the broader project.
* **Fee Distribution**: Once the Revenue Bridge on each blockchain accumulates a sufficient amount of fees, these are prepared for bridging to the Ethereum Fee Batch.
* **Bridging Process**: The bridging process can occur directly to Ethereum or through intermediate chains, depending on the preferred method specified in the contract.
* **Fee Batch on Ethereum**: Here, all protocol fees are aggregated. Upon reaching a substantial amount, the fees are split between the ChainPL Treasury and the Governance Pools, after converting into native ETH.
* **Governance Pools Rewards**: These pools hold CPL deposits from token holders, rewarding them with a share of the protocol fees, proportional to their CPL holdings. The default reward is in ETH, but an option like the CPL Maxi Vault can automatically convert these rewards back into CPL tokens, enabling an autocompounding effect for users.

In essence, ChainPL's protocol functions through a carefully designed system of automated yield farming and strategic fee distribution, ensuring both efficient yield generation for users and sustainable incentives for stakeholders involved in the protocol's growth and governance.


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