PancakeSwap is arguably the most successful project built on the Binance Smart Chain (BSC). This can be evidenced by the growth of the platform in terms of number of users, Total Value Locked (TVL), number of transactions, as well as the rapid rise in the price of CAKE (Pancake Swap’s native token).
PancakeSwap is now a leading decentralized exchange (DEX) platform, placed only behind Uniswap and Sushiswap in terms of 24-hour trading volume. On 21st April this year, daily transactions on PancakeSwap alone exceeded the total number of daily transactions on the whole of the Ethereum network. currently, PancakeSwap is the biggest DEX in terms of TVL. Just at the beginning of the year 2021, CAKE was trading at less than a Dollar but grew to an all-time high of $43 by the end of April. A quick analysis of CAKE’s fundamentals will reveal that CAKE is still far from reaching its full potential. Therefore, we can only be bullish on CAKE for now. It is no wonder CAKE has become a much sought-after and very attractive coin to hold.
In case you’re holding onto some CAKE, or you are planning on buying some, you might be interested in knowing where to keep your CAKE in order to have more bang for your buck. The rise in Decentralized Finance (DeFi) has made it possible for people to grow their crypto holdings through various means such as staking, farming, lending, and providing liquidity. In my humble opinion, it is rather inefficient to hold your crypto on an exchange if it could be elsewhere gaining interest and multiplying itself. But that’s just an opinion, it is not financial advice no matter how smart it sounds. Always endeavor to do your own research (DYOR). I digress.
I compared the possible returns on investment (ROI) on four leading platforms where you can stake and farm your CAKE to get more CAKE. Of course, the security of your investment is key, so you want to put it on a platform that is secure and one you can trust. There may be many other places where you could grow your CAKE apart from the ones I will mention here, but my research has led me to the conclusion that these platforms have proven themselves as trustworthy.
Of course, your CAKE will feel right at home on PancakeSwap; It is the native token after all. There are currently two pools where you can stake your CAKEs on PancakeSwap. There is the “Manual CAKE” and “Auto CAKE”. The Manual CAKE enables you to earn CAKE when you stake CAKE at an APR of 88.75%, while the Auto CAKE pool has 138.63% APY. The difference between these pools is that Auto CAKE is automatically compounded, meaning that CAKE earned as profit is harvested and restaked. For Manual CAKE, you have to manually harvest your CAKE earned and restake it. Take note that you will be charged a 0.1% unstaking fee if you withdraw within 72 hours of staking in the Auto CAKE pool. The Auto CAKE pool also attracts a 2% “performance fee” which is subtracted from each harvest. This fee is burned (I think this is a good thing for the ecosystem as burning creates more scarcity for CAKE, therefore increasing its value).
Beefy Finance is a multi-chain yield farming platform. It allows users to gain more crypto on crypto by automatically maximizing rewards from various DeFi platforms. The following two pools are available to stake CAKE and receive more CAKE. The first one had an APY of 145.38%, while the second one had 149.19%. Beefy Finance will automatically compound your CAKE, thereby eliminating the need for you to manually restake your profits.
Pancake Bunny is another interesting project on BSC that has enjoyed massive success. It is a yield optimizer that enables users to gain more interest on their staked crypto through the use of its auto-compounding feature. As far as staking CAKE is concerned, Pancake Bunny had an APY of 165.89%. Not only do stakers of CAKE get profits in CAKE, they also receive rewards in BUNNY (Pancake Bunny’s native token). BUNNY was trading at around $4 at the beginning of the year and is now trading at around $300. The massive surge in BUNNY’s price is testament of the great potential of the platform and its token (BUNNY). Pancake Bunny was a third finalist in Binance’s Most Valuable Builder II accelerator program and received $1.6 million seed investment from Binance Labs. The other two finalists were AutoFarm and Beefy Finance.
Note that Pancake Bunny also charges a 0.5% fee if you withdraw your CAKE within 3 days of staking it.
Total APY of 164.37% shared between CAKE (100.47%) and BUNNY (63.90%)
Harvest Finance is a DeFi farming platform originally built on the Ethereum network. Harvest finance’s algorithm is built to automatically farm the highest yields from the latest DeFi protocols optimally. Harvest Finance is now available on BSC. CAKE can be staked to receive rewards in CAKE and FARM (the native token for Harvest Finance). The FARM token took a hit in October 2020 after a hack in which hackers took away with $24 million from the Liquidity Pools, but has since steadily recuperated its losses. The image below shows how the staking rewards would be distributed between CAKE and FARM.
APY 133.36%: 126.80% Auto harvested CAKE, 6.56%: FARM rewards
*NOTE: APY in pools is dependent on the number of participants in that pool. Therefore, APY may go up or down accordingly.