You already know I am now a BSC fan.
Low fees, faster transaction confirmation speed, innovative products, insane APRs, and some awesome people.
Anyway! This post is not to start another praise session for BSC.
But to tell you how my trading and yield farming journey started on BSC.
PancakeSwap and CAKE
It all started on December 23, 2020.
As is my custom when considering investing in a new project or researching to write about them.
I went into the PancakeSwap Telegram group.
And began asking a series of questions that will let you know that someone is on a DOYR (do your own research) mode.
Before then, I had already written my second post about BSC, where I highlighted the top 5 decentralized exchanges on the Binance Smart Chain.
Also, I had been following my friend, PVMihalache’s posts about farming on PancakeSwap.
I had also scoured Twitter and discovered that PancakeSwap was the most popular DEX on BSC.
So I already knew a lot about the project before I went asking them questions on Telegram.
The CAKE Flipping Begins
After getting answers to my questions, and satisfied that this risk is worth it, I created a new wallet for it.
My plan is to provide liquidity into the CAKE-BNB pool on PancakeSwap and stake my LP token to farm CAKE.
So, I bought $50 worth of CAKE and $50 worth of BNB on Binance and transferred them to my new wallet.
I also made sure I added extra BNB (about $3 more) to cover for the transaction fees.
The coins arrived in my wallet within a few minutes.
After which I provided liquidity into the CAKE-BNB pool
Sorry, I can’t provide you with my actual trade screenshot as I had already done it before now.
But the process is identical as on other DEXs like Uniswap etc.
Once my liquidity provider (LP) token was ready, I staked it to farm CAKE with over 200% APR.
As at the time I am writing this post, the APR had reduced from the initial over 200% to 184% as more people join the pool.
Being a new investor I became a frequent visitor of the PancakeSwap Telegram group.
To track what they’re doing.
And how it is affecting or will potentially affect my investment.
So that I know when to pull out or go balls deeper.
That is when I came across discussions about Beefy.Finance.
Beefy is a yield farming optimizer for Binance Smart Chain.
It works similar to Yearn.Finance and Harvest.Finance.
It compounds your earnings by auto-harvesting and reinvesting every few hours a day.
For example, the CAKE-BNB LP tokens we talked about above, has 451.61% APR on Beefy.
Whereas, on PancakeSwap it’s 184%.
This is possible because of the auto-harvest and reinvesting it does for you.
On PancakeSwap, you will need to harvest and reinvest manually if you want to compound.
And doing this every few hours a day is not only boring “af”, but will cost you fees.
On Beefy you don’t pay those fees, and you don’t have to deal with the stress of manual harvesting and reinvesting.
Moving my CAKE-BNB LP to Beefy.Finance
If you think, I wasn’t going to move my LP tokens to Beefy, then you’re missing something.
I am doing this for the money, so I will take the highest return for my investment 100% of the time.
But before I moved over to Beefy, I asked questions about them on PancakeSwap Telegram group.
Then more questions on Beefy Telegram group.
I was ok with the answers I got and I felt, this too is a worthy risk.
That’s how I moved and staked my CAKE-BNB LP from PancakeSwap to Beefy.
I was earning 0.59% every day and this rate is currently 0.49 as the time I write this post.
Imagine such an insane return and “afaik”, it’s been on for longer than a month.
This was a good return. But is it the BEST available?
For a few days, yes!
Moving my money into the FUEL-BNB pool on Beefy
Until the FUEL-BNB LP pool was launched on December 28, 2020.
The returns were too good to pass by.
It started with 2.7% daily APR.
And programmed to reduce by 2.5% every day until all FUEL tokens (129,000) are released to the community.
Why couldn’t I resist this?:
- The token has a low market cap.
- The maximum supply is 129,000.
- Insane APR.
- Only 27,000 FUEL was already farmed and circulating when I found it.
- It’s listed on PancakeSwap and other DEXs.
- From my research, the risk is 40:60. With 60 being “go for it”.
And that’s what I did.
- I withdrew my LP from the CAKE-BNB LP pool on Beefy.
- Connected my wallet to PancakeSwap.
- Removed liquidity from the CAKE-BNB pool on PancakeSwap.
- Sold my CAKE into BNB
- Bought FUEL with 50% of the money
- Provided liquidity into the FUEL-BNB pool on PancakeSwap to get my LP tokens
- Went back to Beefy and staked my FUEL-BNB LP token.
- And started earning 2.5% daily.
Remember this daily APR reduces by 2.5% daily until all FUEL has been farmed.
My current daily APR for the FUEL-BNB LP pool on Beefy is 1.8% after a few days now.
My plan is to farm this pool until the APR drops to the same rate as the CAKE-BNB LP pool I started with.
Then I will pull out from the FUEL-BNB pool and switch to my original CAKE-BNB pool.
This plan can change if I find a better opportunity and I feel safe about it.
But until then CAKE-BNB is my original pool.
It will interest you to know that the fee I paid for all the above steps was not more than $5.
I didn’t calculate it but I’, sure it wasn’t even up to $5.
That’s what I love most about BSC.
Moreso, that flexibility of moving your funds around the way I did above is not even thinkable on Ethereum.
And that flexibility is exactly what I need to be able to take advantage of opportunities when they come.
Moreso, attempting this on Ethereum DEXs will get you rekt and totally broke from the fees.