Hello everybody! Today i'm writing about a good passive income method by using a very famous defi protocol called pancake swap.
What is pancake swap(pcs)?
It is the most famous and used dex (decentralized exchange) on bsc smart chain. It has the highest tvl on bsc smart chain.
With pancake is possible to:
-swap bep20 tokens
-add liquidity to pools and farm tokens with your lp token
-stake cake
To perform every operation you will need bnb to pay fees as you do with eth on uniswap.
Staking cake
There are so many pool where you can stake your cake to get rewards. Every pool has a different contract and is paying rewards for a limited number of blocks
The 'easiest' and 'safest' way(imho),with no limits on block numbers, to get an income from pcs is staking cake (their defi token) to get more cake!
You can choose between two different pools where to stake cake to get cake:
-the autocompounding pool (130/140% apy)
-the manual pool. (80/90% apr)
With autopool you don't need to harvest your new cake because they will be automatically added to your staked amount.
With manual pool is up to you to reinvest your rewards, if you wish to.
Fees
Remember you will need to pay 3 or 4 fees:
-to enable the staking contract (0.2$)
-to stake your cake (0.001 BNB)
-to harvest your rewards
-to unstake you coins.
When unstaking coins you will also harvest your rewards so remember this trick to save some fees!
Risks
-Defi is risky! Hackers are always looking for protocol's fails to make profits.
-In the last weeks we had a few bsc protocols hacked like bunny,panther or belt finance.
-Bsc is a new world that is why i am even more cautious than with ethereum's protocols.
-Pancake swap is the biggest,most used and known but even if it has an high total value locked it doesn't mean is totally safe.
-Always remember: high yeld=high risk.
So if you want to try the defi world i would suggest you to only use it for a 1/3% of your wallet.
I have always been a defi enthusiast since uniswap beginning so i wanted to test also the bsc blockchain with its biggest protocol.
Always do your own research before using defi!
Never give your keys to anybody. Never insert your keys on any website.
Thanks for reading!
