Crypto
BSC yield farming

BSC yield farming

Between having a baby and work being crazy, I lost touch of my blog posts. I wish I had kept it up because the last six months have been crazy in the crypto world! But I will try to retouch some topics and catch up on what has happened. Meanwhile, I want to flash forward to what’s happening right now in the crypto world, BSC. Why? Because it is pretty hyped up and there is a decent amount of money to be made or potentially lost if you aren’t careful. If you want to just see a list of the projects, check out this post: http://foreverhobbyist.com/2021/02/23/bsc-projects/
SPOILER: I have made upwards of 7% interest DAILY! My overall BSC portfolio has seen 2000%+ APR!!!
But first…

Disclaimer: I am not a financial advisor. The information on this site is for informational purposes and isn’t financial advice. I cannot guarantee that you will have the same results as I have nor can I guarantee that the information shared here is appropriate for you. My opinions are my own despite any referral links that may be within the blog. I am not also not a tax consultant or a CPA.

Binance Smart Chain (BSC) is a blockchain similar to that of Ethereum. It looks strangely similar… But let’s not get too far into the weeds on that. It uses Solidity and already has a lot of the same applications. Why did Binance make BSC? Well it is a perfect opportunity for Binance to build on top of its brand as the world’s largest exchange and make some money for itself and hopefully also for it’s users. Since deploying the smart chain, BNB has seen an impressive price action of over x12 in the span of roughly 6 months. This has propelled BNB to be #3 on the market cap tokens. Smart contracts that are deployed on BSC make BEP20 tokens as easy as Ethereum’s ERC20 tokens. In fact, people have been forking projects from ERC20 and deploying them right onto the BSC network which is what fueling the BSC growth.

There is always a conflict in the crypto space. When Sushi swap launched, I remember outcries of people hating Sushi swap because they thought it was going to dethrone the Uniswap project and take away from it. While from my perspective, it only added extra people into the Uniswap platform from people getting into the yield farming arena. More exposures to these platforms will bring new investors and validity to the project.

BSC on the other hand… Well it’s all about timing and Ethereum’s network is slow and expensive with yield farming. The problem is, in order to participate in yield farming you often have to lose a lot of money in transaction costs with high gas fees. Recently, I have paid as much as $90 in order to put money into a smart contract (to get a high interest rate return) and another $90 to take the contract out. Let alone you have to pay upwards of $30 to swap for the token and then another $30 to cash out of a token. Obviously if I had kept that token for 6+ months and had continued to earn my high interest rate then it would be well worth it. But for better or worst, in the crypto market, everything moves so fast. So losing $240 is definitely painful in the process, although if you make $1000+ then who cares right?

Well this is where BSC comes into play. BSC feels like the defi craze but on the Binance network (for better or worst) but you don’t have the high gas fees and slow processing times. There has been times I have waited over 24 hours for a transaction (looking at you Uniswap airdrop! But thank you, I really really appreciate it)! With BSC, transaction times are fairly instant and cost anywhere from .06 to .56 is what I have seen. So… This leads me to my next question…

Without going into too much depth, yield farming is a way to maximize your crypto investments earning extremely high interest rates from anywhere of 20%-300% or even higher in order to compensate you for providing liquidity. What’s the drawback of yield farming? Yield farming is usually involving DEXs that use the AMM model (automated marketing maker). AMM is basically putting two currencies pegged together in order to allow other users to buy/sell with your crypto. I.E. if you put ETH paired with USDC, then someone can use USDC to buy ETH or vice versa. Generally speaking, you earn extra tokens from people buying/selling on the platform but a lot of people don’t like AMMs because of the impermanent loss. Basically, the more value one side of the pair goes up, the other crypto gets diminished which causes you to lose potential earnings (or save potential losses). I’ll go more in depth on this on a different posting.

There has definitely been some scams and you are relying on giving a smart contract your money which could have defaults in the code for someone to exploit and steal your money. Is it likely? Depends. Some projects get a third party audit(s) and they have survived the “test of time” which is ever so small in the crypto world. Yield farming is great for investors that like to buy and hold for periods of times (usually weeks but maybe months or even years at a time).

Is Yield Farming legit on BSC?

Absolutely, probably, and maybe. With BSC offering faster transaction times and lower gas fees, BSC projects are just exploding right now which causes some insane price actions and also some scams. But even the notion of something like Sushiswap where you can earn 100-300% APR without paying hundreds of dollars in gas fees is extremely appealing on BSC. Is it all great? Absolutely not. There is a general distain towards the largest crypto exchange Binance and the Binance network is not decentralized like ETH. But all the aside, projects on BSC are for the most part very new and it is kind of a mix bag so I am going to give a breakdown of projects that I have used and what I think about it at the end. Keep in mind, any of these projects can always be exploited so it is best to DYOR and gage your risk accordingly.

What are my results after a week minus 15 hours?

My portfolio has seen a staggering 190% APR! Most of that is with BNB, CAKE, ETH and BTC!!! Obviously nothing is without risk and I could lose my money in an instant but assuming these platforms are legit, BSC platform is paving the way to see exceptionally high APR rates.

How to get into BSC?

The two wallets I would recommend are Trust Wallet and Metamask. Despite Metamask being a web extension, it is widely accepted in the crypto community. Trust wallet, is new and foreign to me. It seems legit and I tend to trust it now but I am always a little worried about new crypto wallets.

Trust wallet is a mobile application. Once you download the wallet, they have a defi section that you can connect to different DeFi projects like the ones listed above. It is important to note that you need BEP20 tokens in order to use the DeFi section. The easiest way to do this is by transferring BNB into your wallet and converting it to BSC BNB.

Oh the great metamask wallet. Binance has a guide on how to connect BSC onto the metamask account which only takes about a minute surprisingly.

https://academy.binance.com/en/articles/connecting-metamask-to-binance-smart-chain

The way to convert tokens into BEP20

Being from USA, we have our restrictions and converting to BEP20 isn’t necessarily the easiest way. At first, I was selling my precious ETH and BTC for BNB and then using trustwallet to convert it into a BSC and then rebuying back my ETH and BTC on pancakeswap but there had to be a better way! I haven’t actually used the Binance Bridge but I think if you have your metamask account setup you can easily convert your ERC20 token into a BEP20 token by using the bridge to pull from your ETH wallet and placing it into your BSC wallet. Again, I am not entirely sure, I haven’t done it because it is technically not available in the USA but I believe you can do this with a VPN. The way I’ve done it was…

I setup a SafePal account on my phone. In the wallet, there is a DApp section with a Binance App. If you use the Binance App, it creates you a Binance wallet with no KYC. Once you have the wallet, you are finally free to every token on the Binance network! Horray! But more importantly… If you deposit tokens into this wallet, and you click withdrawal… Most tokens have the bridge built in already! Take Bitcoin for example, you can withdraw BTC as regular BTC, ERC20 BTC (presumably WBTC), BEP2, BEP20 (BSC) and BTC(SegWit). If you deposit (most) assets here, you can then turnaround and withdraw a BEP20 version which allows you to use it on pancakeswap. Why is this important? Because now you got tokens like Dogecoin on Pancakeswap easily and accessible. Is there a wDOGE that is legit on Uniswap? I think so? But it doesn’t matter because transferring your Binance wrapped token cost like .06 and its fairly instant and now you can stake your doge in a liquidity pool and earn interest on that bad boy! But seriously though, this isn’t a shill for DOGE, I generally don’t like meme tokens but thats a story for another day.

2 thoughts on “BSC yield farming

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      Hey! I’m new here! Been reading your blog off and on all day, and can i just say, you’ve offered some super helpful advice, girl! And I read on another page you had a baby! Congrats! Mine just turned 10 months, so I can actually understand and respect your type of hustle doing what you’re doing with all the research and blogging!! You’re crushing the game!

      -@HODLthings

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