Yield Farming on BSC - Introduction

Binance Smart Chain – High Yield Farming

BSC is very new & hyped, most projects are very young and 99% scams. This is considered very high risk, be prepared to lose money. We are early, it helps a lot. Diversify and don’t ape in only one shitcoin.

BSC = Binance Smart Chain (BEP-20)

When making withdrawals to your BSC wallet, always remember to select the BSC network: BEP-20.

Wallet extensions:

I have good experience with MetaMask on iOS also (you can sync with the browser extension). Use browser in MetaMask on mobile, not Safari.

Pools or farms?

Keeping it simple, from high to low risk.

    1. Farms > imo, the best you can do.
    1. Pools > safest option.
    1. HODL > incredibly stupid, just pool then.

Farms provide liquidity. It allows people to buy & sell.

Without people farming (liquidity pools) you can not buy or sell the tokens. This is considered the most high risk method of farming, since you exchange your “real” tokens (ex. BNB) for LP tokens (a smart contract). LP tokens can be rigged/rugpulled by the dev team. The lower the liquidity, the higher the APY, ofcourse this is to motivate people to provide liquidity.

If you want to farm 100 CAKE, you would have to provide liquidity on a 1:1 ratio for the farm you choose, so for 100 CAKE you would add approx. need another 6,5 BNB at the time of writing, to get your LP tokens.

BNB or BUSD farms?

This is pure choice of personal risk appetite. Impermanent loss is a key here. If you are in CAKE/BNB-LP and CAKE goes +50% and BNB -50% you would be break even when you exchange your LP tokens back (excluding your gained rewards). If you are in a BNB pool you will most likely have less price volatilty risk, choose your risk level appropiately. Just keep an eye on the liquidity. You can get out of the farm at any time, no locking period I have seen so far.

Since all BSC activity needs BNB, most people choose BNB farms because of the gain potential from BNB. This is also why APY for BUSD pools have lower APY returns. Theoritical logic behind this is, as long as people keep earning (big) money on BSC, so keep using BSC (and constantly buying BNB and paying BNB fees) BNB has to go up!

Pooling is the simple staking as most of us know it.

Reward and risk is lower than farms. There is no maturation period for most coins, so you get rewards as soon as you pool. There is less risk, no risk for rugpulls (well, you are exposed to the price, ofcourse). You can tokens take out at any time, or compound them.

Don’t HODL your coins too long or if you do, don’t overrisk.

Most (shit)projects give very high ROI, everyone at least stakes or farms and is profiting from this, deflating the price. You’re missing out and will probably lose, since there will be a lot of profit taking from people that do farm/pool.

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