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Yield farming is the process of staking, lending, and even borrowing cryptocurrency in return for cryptocurrency rewards. It is one of the main drivers of decentralized finance (DeFi) and is closely related to liquidity mining. Liquidity mining is a major subset of yield farming in which a person lends their liquidity to a platform in return for token rewards. If those two descriptions sound similar, it’s because they are.
The difference between yield farming and liquidity mining is that yield farming involves a broader range of financial activities. Still, yield farming and liquidity mining are fairly synonymous, and the terms may even be used somewhat loosely as synonyms. The important point to understand is that by locking tokens into a DeFi protocol, a user may expect to make a profit through additional cryptocurrency from their existing cryptocurrency.
For users looking to farm on Binance Smart Chain, there is no shortage of options available. Some of the most popular protocols include ApeSwap, BakerySwap, Venus Protocol, and of course, PancakeSwap.
Let’s take a closer look at PancakeSwap since it is one of the most popular options. The PancakeSwap automated market maker (AMM) can be visited here, but the Farms page is available directly here.
One of the nice features of PancakeSwap is that it comes with both day and night mode options, so how the Farms page displays will depend slightly on your personal preference.
Before we start to yield farm, we will want to consider which of the farms we want to enter. Here CAKE-BNB sounds like a good bet since CAKE is the native token of PancakeSwap and BNB is the native token of Binance and Binance Smart Chain. Since both tokens are very popular, their respective ecosystems will be quite robust and carry less risk in the longer term.
Here we see that CAKE-BNB will give us an annual percentage return (APR) of 38.07%. That means that if you were to lock up $1,000 of CAKE-BNB liquidity in the protocol for a year, you could expect to receive around $380 in return over a year. Smaller and less well-known tokens may have higher APRs but will probably also carry higher risk.
If you haven’t already done so, you will, at this stage, need to connect your crypto wallet to PancakeSwap. There are many wallet options available for PancakeSwap, including TrustWallet, WalletConnect, and MathWallet, but we’ll use Metamask. Before you use your Metamask wallet with PancakeSwap, you’ll first need to set up Binance Smart Chain on Metamask. If you don’t know how to do that, we’ve produced a helpful guide - “How to Connect MetaMask to Binance Smart Chain.”
That done? Good. Simply click the “Connect Wallet” button in the top right-hand side of the screen and approve.
Before you lock up any liquidity for yield farming, you must first split your capital between the two farmed tokens. For the CAKE-BNB farm, $1,000 of BNB would need to become $500 of CAKE and $500 of BNB. Use PancakeSwap’s token swap feature to convert $500 of your BNB into $CAKE. Similarly, for the BUSD-BNB farm, you would need to swap $500 of your BNB into BUSD.
Click on the ‘Trade’ page, select ‘exchange’ and swap your assets between the two tokens you wish to farm. You will need to wait until the transaction completes before you move to the next step, but because this is the ultra-fast Binance Smart Chain, that will probably take about as long as it takes to read this sentence.
Now you need to add liquidity to the platform. Above the token swap screen, you will notice a toggle between Swap and Liquidity. Click “Liquidity.” Now enter the numbers of tokens to stake and select “Supply.” A pop-up will appear asking you to “Confirm Supply” - click this, and then also approve the transaction in your Metamask wallet.
Now that you have provided liquidity, you will have your LP tokens or liquidity provider tokens. These tokens are a proof of deposit, similar in some regards to the ticket you receive when you hand over your jacket at the cloakroom of a nightclub.
Now that you have your LP tokens, you want to return to the Farm page, click on the farm you wish to join (in our case CAKE-BNB), and in the right-hand column, you should see a button for CAKE-BNB staked. Click on this, and enter the amount of CAKE-BNB LP tokens you wish to stake. If you want to stake all your tokens, simply click “Max” and click “Confirm.” Once again, you will need to confirm the transaction in Metamask.
Presto, you are now yield farming on PancakeSwap and Binance Smart Chain. While different protocols may look slightly different, the process is largely the same. Once you have gone through the process on one platform, you’ll quickly learn to find your way around others.
We’d be remiss if we didn’t explain one more thing before deciding whether yield farming is for you. Yield farms have some risk factors, especially that of impermanent loss.
Liquidity pool tokens entitle their holder to a percentage of the liquidity pool. For instance, if a person places money into a liquidity pool at 10% of that pool, they will receive 10% of the pool when they exit. Over time, the exact nature of what is in the pool may change. This may mean that the liquidity pool is bigger or smaller than when they entered.
It could also mean that the price of the tokens in the pair has diverged. For instance, one of the tokens may have increased in value while the other token decreased in value. In effect, the tokens separate in value from each other.
Impermanent loss occurs when the price difference between the two locked-up tokens changes too much. Since the pool must remain balanced, traders can remove the appreciating asset in return for the devaluing or stable asset. When the liquidity provider returns their LP token and receives 10% of the pool in return, they may find that the value of what they receive is less than it would have been if they had simply hodled their tokens.
This ‘impermanent loss’ does not necessarily mean the person has lost money. Impermanent loss only refers to the value of withdrawn tokens compared to deposited tokens and doesn’t consider the value of yield faring gains in its calculation.
As we explained at the start of the piece, yield farming is a broad topic that involves many different strategies. If you’ve followed this guide, you should now understand some of the basic concepts involving yield farming on Binance Smart Chain. However, there are always innovations in this space and new things to learn. To keep up to date with all the happenings in DeFi, Yield Farming and everything else BSC related on Binance Smart Chain, don’t forget to bookmark BSC.news.
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Andrew (BSC.News)
Hello everyone and welcome to the AMA with ProjectOasis!
Today we have FS and Imp from over at ProjectOasis joining us to talk about their new metaverse
Pleasure to have you two here today :)
FS (ProjectOasis)
Hey Andrew, thank you for having us!
Andrew (BSC.News)
So how this will work is, the AMA will consist of two rounds. The first round will be us going through the questions that I had prepared for you before hand. And then the second round will be a community round where I will open up the room to allow questions to come in. The second round is also where we will select the two winners of our giveaway. Sounds good?
FS (ProjectOasis)
All good buddy 😁!
Andrew (BSC.News)
Great, so to start things off
1. Please introduce yourself and the team behind ProjectOasis.
FS (ProjectOasis)
I'm the co-founder of ProjectOasis, we are a team of 19 (and still growing)
Our team initially started out as traders and investors in the cryptospace in 2017. Through our experiences, we realized that DeFi can be difficult to navigate. We have combind our experience and look to provide a simple and intuitive platform for new and experience user alike.
Andrew (BSC.News)
Nice, so let's talk about that in the way that you have made DeFi easier to navigate
2. What is ProjectOasis?
Imp (ProjectOasis)
Yes sure! Let's start with an introduction video.
Andrew (BSC.News)
Awesome, one sec for me to watch it please
Imp (ProjectOasis)
ProjectOasis puts a fun and interactive spin onto DeFi services; The Oasis metaverse will consist of various swaps (AMMs), launchpads, NFT marketplaces as well as a Participate-to-Earn element where users are rewarded simply for interacting within the metaverse.
Andrew (BSC.News)
Oh wow that's super neat. Brings back a very nostalgic feeling of playing video games from when I was little
So with that in mind
3. Where did you draw inspiration for ProjectOasis? In terms of game design as well as starting it on blockchain?
Imp (ProjectOasis)
Our inspiration comes from games that we have played in our childhood, games like Maplestory, Stardew Valley and Ragnarok. While these games were enjoyable, users never held true ownership over their in-game assets. ProjectOasis aims to change that by utilizing NFTs which will belong to users entirely.
Andrew (BSC.News)
Fantastic
So my next question is
4. Can you tell us more about the metaverse and how to stake, access the launchpad, etc?
FS (ProjectOasis)
In our metaverse, the farming and staking process will be represented by crops (pumpkin, carrots etc)
Instead of merely interacting with a website/smart contract, actions will be represented by an interaction in Oasis. Users get to go through the experience of playing a game which is more social and interactive with an opportunity to get additional rewards at the same time
Participating in our launchpad will be done within the metaverse, users will get to experience the joys of crowd during an IDO (social element) and will be able to even discuss and socialize with other users while waiting for an IDO to take place
Andrew (BSC.News)
Oh that's super interesting
FS (ProjectOasis)
Thank you 🙏
Andrew (BSC.News)
So for those who may not be following along. You are saying that actions within the metaverse has real life implications. So farming in the metaverse would be like farming on a Dapp?
FS (ProjectOasis)
Yup, for example, doing a swap in Pancake House in Oasis, you are actually performing a real swap on Pancake
Andrew (BSC.News)
5. What is $OASIS and how is it used on your platform?
FS (ProjectOasis)
User visit the Pancake house and interact with it
User will be able to swap directly, sign and authorize on metamask
Andrew (BSC.News)
Very cool!
FS (ProjectOasis)
1. Governance for Dao
2. To Participate in Ola Launchpad (Priority + Allocation)
3. Dividends from NFT sales
4. Discounts paying with Oasis token (purchases from marketplace)
5. P2E
FS (ProjectOasis)
Our cosmetics are NFTs.
yup, Oasis token used to purchase our NFT at a discount
Andrew (BSC.News)
Okay nice
7. When will the metaverse be released and is it play to earn?
FS (ProjectOasis)
Our metaverse will be up and running around our IDO date. We will be integrating a play-to-earn model but that will come in Q1 of 2022.
In between, we will introduce our Participate to Earn
Andrew (BSC.News)
How exciting!
So last but not least
8. Any exciting news you want to announce here today?
Don’t miss out on chances to participate in our very own launchpad within the Oasis metaverse! This will be the 1st of it’s kind and you definitely want to be a part of the Oasis.
Follow our socials for more giveaways and alpha
Andrew (BSC.News)
very exciting stuff! Make sure to go and check out ProjectOasis all! Their new metaverse lowers the barrier of access for all DeFi users and they are looking to make the space a more fun, interactive and exciting space to be in!
Multi-chain smart mining Decentralized Finance (DeFi) platform, CoinWind, has announced the third security audit of its protocol. The audit will be done by Certik - one of blockchain's leading security auditors.
The platform wants to grow its use cases while keeping security a top priority. CoinWind disclosed the news via a tweet on September 23:
"CoinWind is being auditing [sic] by Certik @certik_io"
From information on the platform's website, CoinWind has earlier been audited by Fairyproof and Beosin. However, a clean audit report by a high-reputation security firm like Certik will boost the credibility of CoinWind.
While we wait for the audit report to be ready, Certik's real-time smart contract analysis engine, Skynet, rates CoinWind well above average across various parameters. Though it does not take the place of a full audit report, a good score from Skynet could indicate a protocol's health.
CoinWind seems to be setting its eyes on more use-cases for its platform. Recently, it announced a partnership with an NFT marketplace, Treasureland:
"New Partner: TreasureLand. Welcome to Join CoinWind Eco-system. CoinWind will have future NFTs sale on Treasureland."
In addition to Treasureland, CoinWind has also partnered with other NFT marketplaces such as iNFT, Twinci, and SCV Finance. The signs are all over the place that we might see CoinWind launching its curated NFT offerings in the near future.
CoinWind is a strong midrange platform in terms of total value locked (TVL). The platform's single token mining pools have an impressive TVL of over $700,000,000 across multiple chains.
CoinWind is also building the social face of its brand. A community vote for the platform's mascot design is ongoing. See the details here.
CoinWind is a DeFi platform with a smart mining algorithm that maximizes a user's earnings. The protocol compounds earnings by automatically reinvesting generated income. CoinWind initially launched on Huobi's ECO Chain but has expanded onto Ethereum and Binance Smart Chain. The team also has future expansion to Solana, OKEx chains in its sights.
Here are CoinWind's official links where you can learn more about the platform:
Get started on a passive cryptocurrency income by yield farming on PancakeSwap with these helpful instructions.
Yield farming is the process of staking, lending, and even borrowing cryptocurrency in return for cryptocurrency rewards. It is one of the main drivers of decentralized finance (DeFi) and is closely related to liquidity mining. Liquidity mining is a major subset of yield farming in which a person lends their liquidity to a platform in return for token rewards. If those two descriptions sound similar, it’s because they are.
The difference between yield farming and liquidity mining is that yield farming involves a broader range of financial activities. Still, yield farming and liquidity mining are fairly synonymous, and the terms may even be used somewhat loosely as synonyms. The important point to understand is that by locking tokens into a DeFi protocol, a user may expect to make a profit through additional cryptocurrency from their existing cryptocurrency.
For users looking to farm on Binance Smart Chain, there is no shortage of options available. Some of the most popular protocols include ApeSwap, BakerySwap, Venus Protocol, and of course, PancakeSwap.
Let’s take a closer look at PancakeSwap since it is one of the most popular options. The PancakeSwap automated market maker (AMM) can be visited here, but the Farms page is available directly here.
One of the nice features of PancakeSwap is that it comes with both day and night mode options, so how the Farms page displays will depend slightly on your personal preference.
Before we start to yield farm, we will want to consider which of the farms we want to enter. Here CAKE-BNB sounds like a good bet since CAKE is the native token of PancakeSwap and BNB is the native token of Binance and Binance Smart Chain. Since both tokens are very popular, their respective ecosystems will be quite robust and carry less risk in the longer term.
Here we see that CAKE-BNB will give us an annual percentage return (APR) of 38.07%. That means that if you were to lock up $1,000 of CAKE-BNB liquidity in the protocol for a year, you could expect to receive around $380 in return over a year. Smaller and less well-known tokens may have higher APRs but will probably also carry higher risk.
If you haven’t already done so, you will, at this stage, need to connect your crypto wallet to PancakeSwap. There are many wallet options available for PancakeSwap, including TrustWallet, WalletConnect, and MathWallet, but we’ll use Metamask. Before you use your Metamask wallet with PancakeSwap, you’ll first need to set up Binance Smart Chain on Metamask. If you don’t know how to do that, we’ve produced a helpful guide - “How to Connect MetaMask to Binance Smart Chain.”
That done? Good. Simply click the “Connect Wallet” button in the top right-hand side of the screen and approve.
Before you lock up any liquidity for yield farming, you must first split your capital between the two farmed tokens. For the CAKE-BNB farm, $1,000 of BNB would need to become $500 of CAKE and $500 of BNB. Use PancakeSwap’s token swap feature to convert $500 of your BNB into $CAKE. Similarly, for the BUSD-BNB farm, you would need to swap $500 of your BNB into BUSD.
Click on the ‘Trade’ page, select ‘exchange’ and swap your assets between the two tokens you wish to farm. You will need to wait until the transaction completes before you move to the next step, but because this is the ultra-fast Binance Smart Chain, that will probably take about as long as it takes to read this sentence.
Now you need to add liquidity to the platform. Above the token swap screen, you will notice a toggle between Swap and Liquidity. Click “Liquidity.” Now enter the numbers of tokens to stake and select “Supply.” A pop-up will appear asking you to “Confirm Supply” - click this, and then also approve the transaction in your Metamask wallet.
Now that you have provided liquidity, you will have your LP tokens or liquidity provider tokens. These tokens are a proof of deposit, similar in some regards to the ticket you receive when you hand over your jacket at the cloakroom of a nightclub.
Now that you have your LP tokens, you want to return to the Farm page, click on the farm you wish to join (in our case CAKE-BNB), and in the right-hand column, you should see a button for CAKE-BNB staked. Click on this, and enter the amount of CAKE-BNB LP tokens you wish to stake. If you want to stake all your tokens, simply click “Max” and click “Confirm.” Once again, you will need to confirm the transaction in Metamask.
Presto, you are now yield farming on PancakeSwap and Binance Smart Chain. While different protocols may look slightly different, the process is largely the same. Once you have gone through the process on one platform, you’ll quickly learn to find your way around others.
We’d be remiss if we didn’t explain one more thing before deciding whether yield farming is for you. Yield farms have some risk factors, especially that of impermanent loss.
Liquidity pool tokens entitle their holder to a percentage of the liquidity pool. For instance, if a person places money into a liquidity pool at 10% of that pool, they will receive 10% of the pool when they exit. Over time, the exact nature of what is in the pool may change. This may mean that the liquidity pool is bigger or smaller than when they entered.
It could also mean that the price of the tokens in the pair has diverged. For instance, one of the tokens may have increased in value while the other token decreased in value. In effect, the tokens separate in value from each other.
Impermanent loss occurs when the price difference between the two locked-up tokens changes too much. Since the pool must remain balanced, traders can remove the appreciating asset in return for the devaluing or stable asset. When the liquidity provider returns their LP token and receives 10% of the pool in return, they may find that the value of what they receive is less than it would have been if they had simply hodled their tokens.
This ‘impermanent loss’ does not necessarily mean the person has lost money. Impermanent loss only refers to the value of withdrawn tokens compared to deposited tokens and doesn’t consider the value of yield faring gains in its calculation.
As we explained at the start of the piece, yield farming is a broad topic that involves many different strategies. If you’ve followed this guide, you should now understand some of the basic concepts involving yield farming on Binance Smart Chain. However, there are always innovations in this space and new things to learn. To keep up to date with all the happenings in DeFi, Yield Farming and everything else BSC related on Binance Smart Chain, don’t forget to bookmark BSC.news.
