What is PancakeSwap?
PancakeSwap is a decentralized exchange for swapping BEP-20 tokens, launched in September 2020 on the Binance Smart Chain.
PancakeSwap uses an automated market maker (ANM) model. Meaning you can trade digital assets on the platform but there is no order book where you match with others, instead you trade against a liquidity pool, filled with other users' funds. In return with provided liquidity to the pool users are rewarded with tokens in return. What is Cake worth?
At launch the price of a cake coin was valued at around $0.5, reaching $42 in April 2021. Since the ATH it is currently trading at around $11 a coin.
How to stake Cake?
You can purchase cake on the binance exchange and even have an option to stake your coins on the exchange. This step is very simple and easy and still provides good returns.
At present there is availability for 30 day locked staking on Binance Earn. This means you lock your coins in for 30 days and will get a return of 42.25% APY. You can withdraw your coins from the earn fund at anytime but remember you will lose any coins earned from this staking and will take 24 hours to return to your fiat wallet.
If you are lucky enough you may want to stake your coins for 60 days. This option is normally sold out so if you are willing to lock your coins away for a longer period of time you will see better rewards with regards to returns. You will get an extra 3% for this time period.
The final option is 90 days and this offers the best return of 50.56%APY. But again remember if you decide to take your coins out after say 70 days you will lose all the coins staked for that time. But if you are willing to hold and the 90 day is available this would be the best option.
Initially I started with this option for 30 days and the returns were around 35% so binance have increased the staking returns in recent months. At the time I was asking myself is there a better option.
Yes there is!
Staking on PancakeSwap
This is a very simple and easy process but does take a little time but the returns are greater.
First of all you will need a trust wallet app, cake coins (obviously) and some BNB.
Once you have the trust wallet you can can locate your cake wallet you will need to send you cake from binance to this wallet. A fee of 0.022 cake is taken with each transfer. I always send a small amount to ensure I have the correct wallet and then send the remainder. This fee is about £0.17 so not an insane amount. You will also need to transfer from BNB to the trust wallet BNB account as well. This fee is 0.0005BNB (£0.18).
Once in your trust wallet you will need Smart Chain BNB. I transferred £10 in BNB to allow enough fees to be covered. It will cost you 0.004075 BNB to execute this order (£1.47).
One you have both Cake and Smart Chain BNB you are nearly half way there.
Now visit https://pancakeswap.finance/
Here you will need to connect your trust wallet with the exchange. Once connected you can locate the staking pools on this exchange.
You will have to enable each pool. Now you can pick from Manual Cake or Auto Cake. As you can see the Auto Cake will auto re-stake at a fee of 2% of your staked coins. But you do not need to do anything and get a return of 63.87%APY. To enable the pool costs 0.00022215 BNB (£0.08).
Once enabled you can stake your coins into this pool by pressing the staking button. The fee for this stake varies but cost me around £0.80 to stake.
In total it cost about £3 to transfer and staked my Cake into the pool. This is made up very quickly with the compound staking. I have been making around 70 Cake a month in this pool which at the current price is around £580 a month and if it was to return to the ATH of $40 that would be just over £2000 in passive income.
Please note the APY does go up and down depending on the staked amount. This has been varying between 60-85% APY over the last few months.
Hopefully if you are interested in staking Cake this has given you some more options to do so.