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Robert D. Knight
September 6, 2021
Get started on a passive cryptocurrency income by yield farming on PancakeSwap with these helpful instructions.
What is Yield Farming
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.
Yield Farming on Binance Smart Chain
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.
Connecting Your Wallet
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.
Providing Liquidity
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.
Impermanent Loss Explained
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.
How to Yield Farm on Binance Smart Chain
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.
This is a paid Ask Me Anything (AMA), BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement AMA for $2000 Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the AMA.
Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2000. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2000. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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January 28, 2022
OpenSea Email Inadvertently Instructs Users to Mempool Exploitation
The largest NFT marketplace misinformed users, leading to a huge risk of mempool exploitation.
OpenSea Unintentionally Exposes Users to Risk of Exploitation
OpenSea is at risk of losing its place as a top name in the Non-fungible Token (NFT) space. The largest NFT marketplace, in a bid to educate its users about their inactive NFT listings, sent out emails with misleading information. The information only made mempool exploitation easier to execute.
The NFT marketplace sent out emails to users to cancel their inactive listings, ensuring they prevented their items from being sold at the inactive listing price. However, the instruction placed users at risk, as the move eventually gave exploiters the information needed to buy their NFTs at the original low price. Popular NFT collector on Twitter, Dingaling, warned users about the wrong information administered by OpenSea to its users.
“Warning: Do not cancel your OS listings as stated in the email that OpenSea just sent out. Please first transfer your NFT to a different address and cancel the listing/s on the original address before sending it back. OS just put everyone at even more risk than before,” Dingaling tweeted on January 27th.
Dingaling’s thread on Twitter exposed the protocol’s incompetence after revealing how the information misled Niftygateway Artist, Swolfchan. According to Swolfchan’s Tweet on January 27th, 15 ETH was lost because of the email sent by OpenSea.
“So i got two emails today from @opensea about listings, and lost 15 ETH+ from exactly what they are trying to prevent. I was told to please act urgently to cancel any inactive listing. Cancelled a 15 ETH MAYC @BoredApeYC, and it triggered a 6 ETH listing.. And sold?” Swolfchan wrote.
The Right Information
OpenSea, in the early hours of Friday, January 28th, discovered that the information had been used to exploit users. According to Dingaling, although the protocol updated its information, it was still misleading.
“18 hours later and they’ve completely missed the point?! If you have already transferred an item back to your original wallet with old listings still fulfillable, revoke approvals first before cancelling orders. Do you even understand what happened @opensea?” the NFT art collector questioned the platform on Twitter.
Dingaling instructed users to prevent exploitation by transferring all the NFTs with “inactive Opensea listings” out of their addresses before canceling the live listings in their original addresses. NFTs can only be transferred back safely after all the listings are canceled.
Alternatively, users can revoke the allowance of their NFTs to OpenSea on revoke.cash first before canceling the listings if they don't want to transfer their NFTs.
OpenSea has been on the wrong end of improvements recently. The protocol faced a series of problems towards the end of 2021, with website issues, irregularities in NFTs terms and conditions, and poor action from a top name in the OpenSea hierarchy. The latest blunder is not welcoming for the protocol, and it may pave the way for other Marketplaces, particularly on Binance Smart Chain (BSC), to move ahead in the pecking order.
Don’t forget to download the BSC News mobile application on iOS and Android to keep up with all the latest news for Binance Smart Chain and crypto! Check out the DeFi Direct Linktree for all the access links!
For those looking for tools and strategies regarding safety and crypto education, be sure to check out the Tutorials, Cryptonomics Explainers, and Trading Tool Kits from BSC News.
January 28, 2022
Socios.com Sues Argentine Football Federation Over Binance Deal
Web3 crypto competitors have finally come head-to-head after a year long expansion into worldwide sports.
Socios Sues AFA
As Binance announced its partnership with the Argentinian FA in the past week, the news was not met with plaudits by Socios. Socios has filed a complaint against the footballing organization.
Judge María José Gigy Traynor of the Argentinian National Commercial Court ordered the AFA to honor three contracts previously agreed with Socios. The contracts in question were acquired and reported on by Coindesk’s Andrés Engler on January 27. In a statement to CoinDesk, the AFA had recognized the injunction but underlined its intention to appeal.
The AFA then began picking up on its own frustrations claiming:
- The Argentina token was not sufficiently promoted
- Several issues in the use of images of the national team and league
Socios has refuted these claims, notifying CoinDesk that they have made all outstanding payments to the AFA and have no obligations for further payment. A likely instigator for the payment squabble may come from the broad market drawback which has also seen the AFA token plummet by over 50% since the summer, according to CoinMarketCap.
Many speculate that what has precipitated the recent partnership between the AFA and Binance is potentially a higher offer that was otherwise not matched by Socios. The AFA has refuted this assumption, but Binance will do well to let this dispute play out while they remain in the background.
Whether these speculations will be confirmed is another matter, as the courts proceed to examine contractual obligations and seek to determine who is in the wrong.
BSC News will be following closely as the story develops.
What is Socios.com
Socios.com is the official crypto wallet and trading platform for some of the biggest sports teams in the world. The site is an innovative fan engagement platform that was created for the Chiliz blockchain. The Socios platform provides the owners of the fan tokens with access to voting rights in polls, VIP rewards, exclusive club, and sponsor promotions, AR-enabled features, chat forums, games, and competitions. Socios.com aims to introduce millions of new fans from around the world to the benefits of Fan Tokens in 2022 with new innovations, features, and rewards to be added throughout the year.
Follow Socios:
How to Yield Farm on Binance Smart Chain
Get started on a passive cryptocurrency income by yield farming on PancakeSwap with these helpful instructions.
What is Yield Farming
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.
Yield Farming on Binance Smart Chain
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.
Connecting Your Wallet
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.
Providing Liquidity
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.
Impermanent Loss Explained
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.
How to Yield Farm on Binance Smart Chain
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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