About BAO Finance Token
BAO Finance intends to integrate several financial features in to existing decentralized finance assets including yield farming, lending pools, options, margin trading, synthetic assets, and more. BAO Finance's main objective is to provide Yield Farming for Synthetic Assets from Liquidity Pool tokens.
Even though new projects are risky the low price of the tokens allows individuals to buy a significant number for relatively little money. As little as two hundred dollars can still buy over 100,000 BAO tokens on cryptocurrency exchanges. BAO token is currently available to buy or swap on 8 exchanges in various BAO pairs eg. BAO/ETH, BAO/USD, BAO/USDT and BAO/WETH (wrapped ETH).
While waiting for the project to mature over time BAO gives the holders the options to farm to receive even more tokens. Alternatively, BAO tokens can be staked. I summarize two methods to earn more BAO tokens. The first “harder” requiring more steps and a second easier method for those who are looking for a quick and easy set up to receiving extra tokens.
Two Methods for Earning with BAO
There are two ways to earn tokens. First, to farm BAO and the second to stake on an exchange. Of course the perception of “Hard’ or “Easy” is relative and will depend on your experience with cryptocurrency and use of Metamask.
The Harder way: Farming BAO
For an excellent tutorial on Farming BAO follow these instructions using MetaMask.
See the step by step tutorial here: https://chainwave.substack.com/p/farming-bao-token
Briefly the steps are:
- Buy BAO from a decentralized exchange such as Sushiswap or Uniswap. Within the decentralized exchange app (dapp) swap ETHEREUM (ETH) for BAO. You will need to approve the transaction prior to swapping.
- Get Liquidity Provider Tokens for ETH-BAO. For example, under the Uniswap “Pool” tab. Provide an equal amount of ETH and BAO tokens. Once adding liquidity you will hold BAO-ETH UNIV2 tokens.
- Go to the official BAO Website and provide liquidity (the BAO-ETH UNIV2 tokens you just purchased) to farm more BAO. You are essentially staking your BAO-ETH UNIV2 tokens to farm BAO. The process involves “unlock wallet” step, Selecting the MetaMask wallet (the only option), Deposit BAO-ETH UNIV2” tokens and approve for BAO Finance to hold your tokens while staking. After MetaMask approval you will gain access to the staking window. Confirming will start the staking.
Be aware the developers have set up BAO staking to promote project growth. The current farming yield for BAO is impressive at a whopping 159%. When you participate in the farming here, you are issued BAO tokens as a reward. However, 95% those tokens are locked in a smart contract for 1 year after you click "harvest". After that 1 year, the tokens then start to release to you over then next 3 years. This is to discourage people from farming then instantly selling the token. It also helps the developers to give them more time to produce the product and get more support from the community. Personally, three to four years is a bit too long of a time window for me and I like more flexibility and control over my cryptocurrencies.
The Easier Way
Those new to cryptocurrency or unfamiliar with using MetaMask may want to try the easier method. I chose this method largely based on the flexibility and speed to withdraw tokens if needed. Centralized exchanges such as Hotbit.io (https://www.hotbit.io/invest) will stake BAO on your behalf but offer about one-third the return of staking BAO tokens.
Currently, under the BAO staking investment product called "BAOFI DeFi Smart Pool", for every 1,000 BAO tokens staked you will earn 1.3882 BAO tokens each day. Even though the yield is lower than staking from your Metamask wallet on the project website the lock-up when withdrawing your BAO tokens is just 1 day with Hotbit. Earned tokens from staking are not withheld for a year but immediately deposited in your wallet. Along with the lower staking return Hotbit assesses a Service Charge of the Investment Product of 10% of staked profits upon withdrawal.
For those who want the flexibility and access to their tokens without the one year lock up Hotbit’s BAO investment giving a hefty 50.67 % annual percentage yield (APY) which is the real rate of return earned on your deposit.
This is higher interest than most other staking coins. My experience with Hotbit’s investment products for other coins (eg. EDG and USDC) have been very stable and consistent. However, note the percentage interest can fluctuate, change or the investment product can be cancelled at any time without notice on Hotbit’s investment platform. Keep and eye on the percentage return offered and decide if you want to continue staking. If the APY percentage changes (is reduced) you can withdraw your tokens at any time. If Hotbit stops a coin’s investment product all coins and earned staked coins are returned to your investment wallet. My experience with a small amount of Mantra DAO product showed that if an investment product is withdrawn by Hotbit there is little to worry about. My initial OM coins and all earned staked OM coins until that point were returned to my investment wallet safely - they just were no longer earning daily interest.
Please be aware that BAO finance is still in its infancy but if successful will provide much value added financial features for decentralized exchanges like Balancer, Uniswap and Sushiswap. Coin Gecko lists BAO Ranking at #519. The market cap is small at $44.8 million USD. Sushiswap is the current most active market trading BAO tokens. On the BAO website the developer states that, “Bao is currently in alpha and has a one-person engineering team. While we are scaling, there may be higher than normal risk of bugs and we may be slower in being able to respond to them. Please partake accordingly.”
Read more about BAO and join the discussions on Medium (thebaoman.medium.com), twitter (https://twitter.com/thebaoman) and discord (https://discord.com/invite/BW3P62vJXT).
Please feel free to use my Hotbit referral link here to sign up and buy BAO or other tokens and invest in their offered investment products from Hotbit. We both get a little discount on trading fees if you use it.
Disclaimer: I currently am staking both BAOFinance (BAO) and EDGEWARE (EDG) tokens on Hotbit.io’s investment platform and enjoying seeing my number of tokens increase a little each day.
