BSC Tutorial: Providing BakerySwap Liquidity & Utilizing Beefy.Finance Yield Optimizers

This tutorial is a great way to begin yield farming on the Binance Smart Chain in a very effective way. There are numerous liquidity pairs which users can choose from offering high yields.

By
Ujay
on
February 20, 2021
Category:
Tutorials

Introduction

Bakeryswap is a DeFi protocol built on the BSC network. It's a decentralized exchange which leverages Automated Marker Making (AMM) models. This DeFi project also has launched one of the first NFT marketplaces on the BSC.

For those who wish to learn about the protocols utilized in this article check out the following:

Beefy.Finance Project Review: The Leading BSC Yield Optimizer

BakerySwap Project Review: An AMM Innovating NFT-Fi and De-Fi Applications


Liquidity and Yield Optimizers

Liquidity is a measure of ease in which an asset is converted to another asset without affecting the price. Due to the recent surge of AMM’s, individual crypto users can easily supply their crypto assets to these protocols, providing liquidity in return for yield bearing incentives.

For those who are unfamiliar with vaults, I will insert an excerpt that was used to describe vaults in our Beefy Finance Project Review, which I believe elegantly describes the function of vaults:

Vaults serve as investment instruments, implementing strategies through smart contracts. These vaults automate the best yield farming opportunities. Vaults can perform the following actions: Use assets as liquidity, provide assets as collateral for others, manage collateral to reduce odds of liquidation, and use assets to generate a yield and compound profits. With the following actions, vaults allow users to automate their De-Fi farming experience completely. The community and the Fry.World teams create strategies, allowing the process to be effectively optimized.


Steps to provide liquidity on BakerySwap using a MetaMask wallet and deposit into Beefy.Finance yield optimizing vaults.

  1. Go to https://bakeryswap.org, then connect to the BSC network.
Opera Snapshot_2021-01-19_063453_www.bakeryswap.org.png
Opera Snapshot_2021-01-19_063709_www.bakeryswap.org.png


  1. Click on the exchange button at the top toolbar when it opens.


  1. Click on the pool option.
  2. Afterward, select add liquidity.


  1. Then click on the pair you want to provide liquidity for.


  1. Then you approve(1) and supply(2) and confirm (3) the LP token transaction to provide liquidity.


  1. When your LP token has been supplied, go-to app.beefy.finance.


  1. Scroll till you see the pair you provided liquidity for and click on it.
Opera Snapshot_2021-02-17_191633_app.beefy.finance bake lp d.png


  1. Choose the amount of your LP token you want to deposit in the vault and click on deposit.
Opera Snapshot_2021-02-17_191733_app.beefy.financeapprove.png
  1. After that, you approve the transaction and supply the LP token then your token is deposited in the vault.


WrapUp

This tutorial is a great way to begin yield farming on the Binance Smart Chain in a very effective way. There are numerous liquidity pairs which users can choose from and it is important to understand the mechanics of being a liquidity provider. Overall, this tutorial allows users to quickly begin yield farming using BakerySwap liquidity incentives which are automatically compounded using Beefy.Finance Vaults.

For those who wish to learn more about yield farming, liquidity provision and impairment loss, check out the following articles:

Cryptonomics: Yield Farming Explained

Cryptonomics: What Is Impermanent Loss?

Dive Into De-Fi: Liquidity Pools Explained

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Ujay

Ujiri Kelvin Atahine Is a native Nigerian who is pursuing crypto research and writing. Ujay describes himself as a, foodie, crypto enthusiast, and overall, a display of exceptional character.