Pancake
Alright! It is time to have some Pancakes. I am sure by now lots of you have been introduced to Uniswap Liquidity Pool. Leo liquidity pool is hosted here. Full disclosure, I do invest in the Leo Liquidity Pool (LP). LP is the new 'in-thing' in crypto. I do not consider myself an expert of LP, but I am dipping my toes into in with 'minor' interest. I have many reasons for that. Primary being, lots of the popular LP, including wLEO is based on Ethereum. While that makes in popular and part of the cool kids in town, but at the same time, anyone who have moved any ETH based token or have used the ETH network are very aware of the exorbinent gas fees. If you are moving tens of thousands dollars worth of token, it is perhaps bearable, but when you are moving hundreds of dollars worth of token, the gas fees hurt a lot. There are other alternatives, I happen to run into the Binance Smart Chain (BSC). It is an ETH line smart contract based chain. Although it doesn't have the popularity of ETH, but at the same time it is far cheaper in terms of transaction fees. Some might call is centralized, but that fact never bothers me too much. Last I checked my toothbrush is centralized, also the keyboard I am typing on is also centralized :) Jokes aside, you won't feel any difference. It is faster and cheaper than ETH transactions, and that is all I am interested in.
PancakeSwap is a decentralized exchange running on Binance Smart Chain, with lots of other features that let you earn and win tokens.
Above is the landing page of Pancake Swap. First thing I like about it is that it is intuitive and funny. But when it comes to delivery it is extremely efficient and lucrative. One of the fundamental thing I struggled with LP is its volatility. LP is a pair, and one or both pairs can be volatile resulting in a lot of 'impermanent loss'. For those who jumped into the pool, they normally deals with it. There is thought about putting a stable coin on one side of the pool to reduce volatility, or even both side (2 stable coins). However, in the second case, the return suffers. Also when the return is low, high transaction fee eats up into whatever little profit you are making.
Farms
When I looked into the Pancake Swap LP (they call it Farms). I saw a whole bunch of interesting ones.
The one that peaks my interest is the USDT-BUSD pair. I know many traders or crypto folks hold a stable coin like USDT. Mostly as a store of value, or as an interim product between trades, or in some cases, where folks can't own USD easily, but they can hold USDT in an exchange. Regardless, USDT is a popular stable coin. BUSD is Binance's version of USD. I immediately saw the 32% APR. I thought well let me test it out. Also of interest that the liquidity of the pool is $6.7M(just in comparison, WLEO - ETH pool's liquidity currently is $1.1M). I thought that is a good enough liquidity for a small investment of USDT which for me is just wasting away in Binance.
Method
First you need Metamask. Hopefully you already have it. If not, it is almost a must have chrome browser extension for most crypto folks. You can download it for free from google app store. By default, for most people, our Metamask is on Ethereum Main Net.
In order to access BSC, you must add a custom RPC node using the steps below. There is a simple step by step method described here :
https://www.binance.com/en/blog/421499824684901055/Get-Started-on-Binance-Smart-Chain-in-60-Seconds
Once that is done, you will be able to see Binance Smart Chain on the drop down and you can select it. Then, the first thing you need to have any transaction, is BNB of course, which is the Binance utility token. There is faucets and other ways you can get small amount of BNB, but I didn't bother with them. I had some BNB on Binance, and I transfered them to the metamask wallet. Once you have that. You must buy and transfer equal amount of USDT and BUSD to the same wallet. Once you are done, your Metamask Wallet may look something similar to this:
I have about 400 USDT and 400 BUSD, along with 1 BNB. You can make do with way less than 1 BNB, by the way. Afther this it is very intuitive if you are familiar with uniswap. You go to pancake swap exchange. Go to liqudity page. Find your pair USDT and BUSD. Enter the amount, must be same on both cases (if you enter one, the tool will calculate the other). Then click, add liquidity. Immediately you have created USDT-BUSD LP tokens. Next you will stake them to earn reward in the form of 'cake'.
Next you go to the "Farms" page of Pancake Swap. Find your USDT-BUSD farm. Then click approve and click + to stake your newly gain LP tokens. And you are done.
I have staked for about 2.5 days, and there are the results:
I put only $800. I think I made 5 different transactions. Total expense under 20 cents! Try that with ETH :)
Hope you like it. Happy eating Pancakes! Oh. I almost forgot, Cake is currently $1.5.
Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Adviser. Consult professionals for any financial, accounting or legal related questions you have.
Charts are created in Tradingview.com, which is a free service.
Posted Using LeoFinance Beta
BSC is a beauty in DeFi space. I’ve put some money myself in pancakeswap and everything’s smooth so far.
Thank you for promoting it !
Posted Using LeoFinance Beta
I am digging it.
Darn! I was looking forward to something nice for breakfast!! 😊
Ok, had a quick read and I managed to read to the end which is a great start for a noob like me. Gonna bookmark this and reread properly when I sit in front of my computer. Tks
You will love Pancakes. There is syrup too :)
Chocolate sauce? 😉
Not there yet. But it's flexible. You can make your own ;)