PancakeSwap - Tutorial - How to add liquidity , farm CAKE and stake CAKE

By diegoz | Crypto_tutorials | 24 Jan 2021


PancakeSwap is a decentralized exchange running on Binance Smart Chain, with lots of other features that let you earn and win tokens.

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In this tutorial I'm going to show how to add liquidity to any of its many pools, farm cake and stake cake; you will need the following:

  • Metamask connected to Binance Smart Chain. If you don't know how to do it i wrote an article here.
  • BNB for the fees
  • BNB in a proportional ratio to the asset you want to provide liquidity in BSC blockchain
  • The asset you want to provide liquidity in BSC blockchain.

Once you are all set let's go to pancakeswap and do the following steps

How to add liquidity to a pool

  • Connect your metamask wallet, remember to select smart chain

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  • On the left menu select Trade --> Liquidity

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  • Click add liquidity button

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  • Provide Liquidity, in this case i'm going to add 1 cake an its equivalent in BNB

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  • Approval requires a fee in this case it was 0.00351462 BNB ($0.14). You will get LP CAKE/BNB tokens. By doing this step you will benefit from the pool fees. If you want to check the approximated yearly returns you can check it here.

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How to farm cake

In the previous section we got some LP tokens. We can use this tokens to farm cake; in order to do so:

  • On the left menu select Trade --> Farms
  • The farm for your LP tokens will be highlighted, you need to approve the contract and pay a fee on metamask in this case 0.00088662 BNB ($0.04)

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  • Add tokens to the Farm with the add button, press confirm button, approve on metamask, you guessed right paid another fee 0.00242646 BNB ($0.10) and that's it you are now farming cake.

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How to stake cake

Depending on how much liquidity and time has passed you should have some cake to harvest. You can stake that cake in order to get other tokens or get more cake. But before that you have to harvest your cake and pay a fee... 

Anyway once you got your cake in your wallet:

  • On the left menu select Pools

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  • Approve cake, confirm on metamask wallet and pay a fee for the transaction 0.0008886 BNB ($0.04)

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  • Deposit your cake to stake it, confirm on metamask wallet and pay a fee for the transaction 0.00337728 BNB ($0.14)

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That's it now we have done the following:

  • Added liquidity and benefit from the fees of that pool.
  • Staked our LP tokens in order to harvest CAKE
  • Staked our CAKE in order to get more CAKE or the token of your choice

I like Binance Smart Chain because it's cheap and fast. Obviously it's new and it's not saturated let's see how it far it goes. I think if you want to experiment Defi without having to pay some high fees it's great.

Right now the price of CAKE is:

At last but not least have a good one! 

P.D. If you like the article give me a thumbs up and follow me here on publish0x

 

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diegoz
diegoz

i'm into crypto because i like the concept of free money


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