Learn how to use pancakeswap for bnb to busd yield farming. You will learn how to become a liquidity provider on PancakeSwap and provide liquity to BNB BUSD pair. Yield Farming in Farms is a great way to earn CAKE rewards on PancakeSwap. Farming pool require you to stake two tokens to get LP Tokens, which you then stake in the Farm to earn rewards. This lets you earn CAKE while still keeping a position in your other tokens! Yield farming takes a little work to get set up. You’re going to need some "LP Tokens" to enter into a Farm with. Farms can only accept their own exact LP Token. In my example, the BNB-BUSD Farm will only accept BNB- BUSD LP Tokens. To get the exact LP Token, you'll need to provide liquidity for that trading pair.
ROI on Pancakeswap
The ROI (return on Investment) on my example of BUSD-BNB pair as follows (refer to video shown below): APR including LP rewards is 50.17%. Base APR (yield only) is 19.0%. Normalized for CAKE rewards for $1000 is for 1 day time frame it is 0.05% ROI and with CAKE per $1000 is 0.04%. For 7 days ROI is 0.36% with CAKE per $1000 is 0.28%. For 30 days ROI is 1.57% and CAKE per $1000 is 1.22%. For 365days or APY is 20.92 ROI and 16.28% for CAKE per $1000. LP rewards of 0.17% trading fees distributed proportionally to token staked among LP token holders.
Transferring BNB from Binance to Metamask Wallet
BNB is a Binance exchange coin. For this you need to have funds in your Metamask wallet connected to Binance Smart Chain. You have to convert BNB to BEP20 token. I send BNB from Binance US exchange to Binance Chain Wallet as BEP2 and use Binance Chain Wallet and convert to BEP20. I will provide link below on how to convert BNB to BEP20 BNB on Metamask wallet. I used BEP20 BNB on Metamask wallet to buy BUSD to swap BNB into BUSD. Then, I added liquidity to PancakeSwap BNB / BUSD pair.
PancakeSwap Trading Pair Token Purchasing via Metamask Wallet
Goto pancakeswap.finance/farms. Select BUSD-BNB pair. Click Get BUSD-BNP LP (LP short of liquid provider) pair. In my example, I am adding 0.1 BNB and 28.5 BUSD. First you need click approving BUSD. This will confirmed via metamask wallet. Metamask will send a confirmation transaction. It shows in this example BUSD per BNB as 282.939 and BNB per BUSD at 0.00353 and share of Pool. My example is less than 0.01%. You will get a transaction receipt as approved from Metamask wallet from BScScan. Now click Supply. Now I got a message saying how much BNB/BUS Pool Tokens I am going to get. I got 1.5136 BNB/BUSD pool tokens. Screen show following transaction rates. BNB deposited was 0.100738 and BUSD deposited was 28.5027. The conversion rate was 1BNB = 282.9 BUSD. My share of pool is 0.00001931%. Click Confirm Supply button. Funds from you Metamask wallet will be used to pay for gas fees. I kept the default gas price of 5 Gwei with gas limit of 232796. The total fee was 0.10 USD. This is why I like Binance Smart Chain because of lowest gas fees compare to Uniswap with Ethereum based. Click Confirm. In this I am supplying 0.100747 BNB and I will get only 0.100738 BNB tokens. As you can see there is a transaction submitted screen. You can click close or click view on BscScan. BscScan is similar to etherscan on Etheruem where you can see all of your transactions. I got a transaction confirmation poop up from Metamask where 0.1 BNB and 28.5 BUSD was added to the liquidity pool successfully. I get LP token in your wallet summary that say I have 1.513 BNB-BUSD LP tokens with pooled BNB of 0.1000726 and Pooled BUSD of 28.505. On your Liquidity on Pancakeswap, you can see all your Liquidity pairs. You can click down arrow of BNB/BUSD pair. You can click Remove to remove liquidity from pancakeswap Bnb to Busd yield farming. This explain how to yield farm on Pancakeswap.
