Staking Wrapped Banano (wBan) on the Polygon Network Part 2: Staking

Staking Wrapped Banano (wBan) on the Polygon Network Part 2: Staking

By SpoilerAlert | Crypto For Monkes | 15 Oct 2021


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Hi again and welcome to Part 2 of our series on wrapping and staking Banano on the Polygon network. If you haven’t read it yet, check out Part 1 which covers all the basics to get you started.

In this post, we’re going to ramp thing up by showing you how to stake Liquidity Pairs using Sushi Swap, and use them to earn interest via the Banano Polygon farm.

Step 1: Adding Liquidity

 

Before you start

We’re starting in the middle here as by now you should already have some wBan wrapped and ready to go.

Adding liquidity is a key function of DeFi and is critical for projects to succeed, especially new tokens. The way it works is that you take an existing, established token, pair it with the project token, then stake it in exchange for special tokens called LP tokens, which represent the pair.

Adding liquidity can be done via various dApps, but for wBan, we’re going to use Sushi Swap (https://app.sushi.com/swap).

As with previous steps on Polygon, you’re going to need some Matic for gas fees. As before, you can use the browser function in MetaMask to navigate to https://matic.supply/ and/or https://macncheese.finance/matic-polygon-mainnet-faucet.php to collect some free Matic to use.

Get some wEth

The other thing we’re going to need in order to add liquidity is another type of token: wEth. wEth is Wrapped Ether, and is similar in a lot of ways to wBan. For our purposes here we just need to know that it exists, and that for the wBan farm (see below), we need to add liquidity as a wEth/wBan pair.

To do this, open MetaMask, select the Polygon Network, and use the Browser to navigate to https://app.sushi.com/swap and click Connect. The easiest way to get wEth is to swap out some of your wBan. You're going to need equal values of each so the easiest thing to do is swap half of your wBan for wEth

To do this, click on the Swap tab, and trade some wBan for wEth (gas fees!). You’re going to want equal amounts of each to add liquidity, so make sure you have the amount you want.

Add Liquidity

Once you have some wEth and some wBan in your wallet, you’re ready to add liquidity. Click on the Liquidity tab. Here you need to specify equal values of wEth and wBan. The easiest way to do this is to take to fill in the box for the coin you have the least of first, then the other box will get filled in.

Note: Sometimes you may be short by a small fraction of one type. In that case, the confirmation button won’t show up. Try adding tokens in the other box or reducing the amount you want to add, then you’ll be able to continue.

Once you have equal amounts of wEth and wBan, you can click the button to finalise the liquidity adding (gas fees). Once this is done, you will get a prompt that your transaction was successful, and you will see the wBan and wEth disappear from your wallet and be replaced by LP tokens (click the provided link in the pop up to add the token to your wallet automatically).

Well done you! You’ve now added liquidity to wBan by staking a wEth/wBan pair!

If you want you can stop there and earn a percentage of any fees collected from transaction fees charged when other people interact with wBan! The more you stake, the higher the percentage of the fees you get. These are added automatically to your wallet as wBan.

Farming

But why stop there? Why have a bunch of LP tokens just hanging around, when you can earn interest on them instead? Enter the Ban farm. Farming is where you take your LP tokens and park them in a special dApp called a Farm. The Banano farm is located at polygon.banano.cc (the same place you wrap your Banano).

To start farming, open MetaMask, select the Polygon Network, and head over to polygon.banano.cc and connect your wallet. Use the hamburger icon (top left) to expand the menu and select Stake & Farm.

Farming is easy, just click the Supply button, enter the number of LP tokens you want to stake (or click Max). then click Supply (gas fees).

Once this is done, you’ll see a new box that says wBan Earned, with a nice little number that keeps going up as long as you have your wBan staked!

At any time, you can click Harvest to collect your wBan, which you can re-stake, or cash out by swapping back to Banano. Bear in mind that each transaction costs a bit of Matic in fees, so try to strike a balance between paying fees and collecting interest.

And that’s it! You’re now officially a Banano farmer. This is a great way to earn extra ban on your parked Banano. At the time of writing, the APR% (Annual Percentage Rate) on Polygon is 33%, but it fluctuates and you can boost It by compounding your gains if you like.

I hope that this article helps you on your journey to crypto supremacy. Please feel free to comment if any of this doesn’t make sense or to let us know that you succeeded!

Update: since you're now a pro-staker, it's probably time for you to consider impermanent loss. Check out our article about 3 rules of thumb for you to follow to keep your stakes high!

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Crypto For Monkes
Crypto For Monkes

This blog series is intended for those of us who started their crypto journey via DAG coins, such as Banano and Nano. These coins are a fantastic onramp to crypto, but they inevitably lead into more complex crypto topics, such as wrapping coins (wBan), using wallets such as Metamask and Trust Wallet, and navigating the Ethereum, Binance Smart Chain, and Polygon networks. If you're new to all this or have no idea what any of the above means, then you've come to the right place!

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