> For the complete documentation index, see [llms.txt](https://docs.yieldyak.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yieldyak.com/for-farmers/risks/pool-2.md). # Pool 2 ## New Pool 2 farms are especially risky ### What are Pool 2 farms? Pool 2 farms reward an asset that is included in the pool. For example, * AVAX-PNG rewards PNG * AVAX-PEFI rewards PEFI In contrast, Pool 1 farms do not contain the reward asset. For example, AVAX-LINK rewards PEFI. ### High Token Emission Rates Increase Risk/Reward Pool 2 farms are designed to generate liquidity for the reward token, which usually compensate early farmers with very high returns by using a very high emission rate. Early in these systems, there are two competing forces generating volatility. On one hand, there is buying pressure from farmers who want attractive returns. On the other hand, early farmers place selling pressure on the reward token. More volatility may lead to loss due to the underlying assets losing value. This increased risk explains the very high returns often associated with Pool 2 farms. ## Are Pool 2 farms always high risk? Should I avoid them? Not necessarily. Established Pool 2 farms may have a risk profile more similar to Pool 1 farms. This shift depends most on the token emission rate and volatility. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.yieldyak.com/for-farmers/risks/pool-2.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.