In this article we will see how to swap from Bep2 token to Bep20 using the Binance Smart Chain and Yield Farming.
We need the new Bep20 tokens. Among the main Dapps we have PancakeSwap which allows the exchange between Bep20 tokens. Binance tokens (Bep2 and Bep20) are in full swing and I recommend that you start practicing them so as not to stay out (FOMO) when they go up to the moon.
The Binance Smart Chain is useful for both farming and staking.
What do we need?
1) Trust Wallet: Trust Wallet (Download) (I remind you that using the ref link and buying at least $ 50, you will receive 125 TWT: almost $ 20. This is the native token of the wallet that can be exchanged on Trust Wallet in BNB)
2) Binance Smart Chain Extension (Chrome Web Store)
3) A little bit of BNB in the Bep2 format (which will be used as a gas, even $ 1 is fine). This is the "classic" BNB that we can buy on Trust or Binance
4) Obviously we will also need the Bep2 tokens (for example Cake, Ankr, etc) which we will convert to Bep20
Downloaded Trust Wallet save yourself the 12 word seed. This seed, in addition to being essential to restore the wallet, will also serve us for the Binance Chain Extension we downloaded.
Once the extension is started on the computer, we import the Trust Wallet seed and set a password. At this point we will notice an inverted triangle above that allows us to switch from one chain to another (Binance Chain or Binance Smart Chain).
In the Binance Chain we will read the balance of our Bep2 tokens.
With the "+" key we can add the tokens that interest us (for example I have "TWT Bep2" and I want to convert it to "TWT Bep20").
I step into the Binance Smart Chain, click on "Receive" and copy the address. After that, I go back into the Binance Chain and go to "Send". I choose the bep2 token that I want to convert (for example TWT, Ankr, BNB, etc) and then paste the previously copied address (Binance Smart Chain). The memo is not needed because Trust is decentralized.
Tokens in a cross chain transaction will be sent from one chain to another and automatically converted (bep2 to bep20).
WHAT IS ALL THIS FOR?
Once converted to Bep20 I can do Yield Farming with PancakeSwap (Dapps in Trust Wallet). Pancake allows me to:
1) Making exchanges between Bep20
2) Add liquidity pairs to the various pools (for example BNB / Cake, Band / BNB, etc).
By adding liquidity, I will be able to enjoy very high interest rates (APY) and receive harvest farming (tokens of the caliber of Syrup, Cake, etc). The tokens received depend on the pair added to the pool.
I remember that the two tokens entered are added in a constant ratio (for example 16 Cake + 0.5 BNB, 32 Cake + 1 BNB, etc you will read it in the pool itself). For more info: PancakeSwap.Finance
YFI (Yearn Finance) uses a mechanism of this type (YFI was given to those who provided liquidity; then YFI we know that it reached $ 40,000).
There are many "Dapps" available in Trust Wallet. Also for the BEP20 I point out BSCswap (which is also accessible in desktop version: Bscswap)
DO I NEED TO CONVERT THE BEP2 TO BEP20?
No. Bep2 will remain the format of the Binance Chain: useful for holding, trading or speculation. Bep20 give one more opportunity: to enter Binance's DeFi (this is a bit funny anyway because Binance is centralized!).
Here a complete video: