# Java Farm

On Java Farms, you can deposit your Liquidity Pool (LP) tokens, locking them up in a process that rewards you with JAVA. Java Farms is different from Espresso Pools because in order to earn JAVA yields, you first have to deposit two different Liquidity Pool tokens. You are then in turn provided with high APY rewards which allow you to accumulate JAVA in exchange for liquidity provision! Auto harvesting and compounding are also features on Java Farms which allow automatic reinvesting of your yield farming rewards, thus compounding the gains. Furthermore, we allocate 0.25% of our swap fees to our yield farmers for liquidity provision rewards.

At launch, we will only have 3 LP-token pools JAVA-USDC and JAVA-MATIC and USDC-MATIC. Shortly after launch, we will undertake rapid expansion and have many new LP-token pools to operate as yield farms. All our farms can be found on the [farms](https://javaswap.io/farms) page.&#x20;

Users who are new to DeFi should be aware of impermanent loss. Impermanent loss is a risk that occurs during DeFi farming. In essence, impermanent loss occurs when a locked asset’s price fluctuates. This is due to the fact AMMs are engaging in a balancing act behind the scenes in regards to liquidity on their exchange. AMMs maintain liquidity provider’s deposits at a 1:1 ratio. Therefore, if one of the two assets you deposited in the liquidity pool shoots up in price, then it will sell a portion of that asset and distribute it to your other asset to maintain equilibrium with the 1:1 ratio. Please be aware of this phenomenon and factor it into your financial decision making.\
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