PancakeSwap Yield Farming Guide
Overview
PancakeSwap is a decentralised exchange (DEX) operating on the BNB Chain, supporting BEP20 token trading services. The platform has grown in popularity and users since launching in 2020 and provides access to Yield Farming and other income generating on chain opportunities. There are many popular wallets and exchanges such as MetaMask, TrustWallet etc that can be easily and securely connected take advantage of PancakeSwap services directly.
PancakeSwap Liqudity Pool Instructions
1. Connect your wallet to Pancake Swap
First navigate to the pancake Swap official website making sure that the URL is correct be before proceeding. Click Connect Wallet in the top right corner of the page and select a wallet that you want to connect to the platform. If you have not yet set up a wallet or want to set up a new wallet for rewards check out our helpful guides by clicking here, we recommend MetaMask for ease of use when interacting with Pancake Swap however following instructions apply to any compatible wallet.
2. Deposit BNB & Cake of the liquidity farm tokens of choice
With your wallet connected to Pancake Swap any assets being held can now be exchanged and used to provide liquidity and farming. Select the pair that you want to provide liquidity for in this example CAKE – BNB. Activate the contract to enable Staking feature in preparation for converting the assets to Liquidity Pool token.
3. Exchange your Cryptoassets for Liquidity Tokens
Click on get BNB-CAKE LP or the equivalent pair and the conversion menu will appear as seen below. By exchanging coins for LP tokens, you will receive and earn 0.17% of trading fees charged to other users trading on Pancake Swap. The ratio between the coins is displayed at the bottom and determined by market rate prices at the time of the order, the coins being converted must be similar values to provide both sides of the trading pair.
Before proceeding carefully review the conversion and rates and click Confirm Supply. Your wallet will automatically generate a transaction preparing to send both coins in this case BNB and CAKE to the PancakeSwap Router v2. Please feel free to check the generated transaction and smart contract address yourself to ensure everything is correct and then approve the transaction. Once confirmed your wallet will receive a response transaction from the PancakeSwap Router and BNB-CAKE LP tokens credited to your wallet.
4. Stake CAKE-BNB LP tokens
With your wallet credited with CAKE-BNB LP tokens or the equivalent, click Stake LP to add these to the liquidity pool. This will again prepare a transaction of these coins to the Pancake Swap Router smart contract and allow you to begin generating rewards from your coins. The projected annual return on investment at the current rate is displayed, enter the balance you want to stake, and press Confirm.
Congratulations you now have a stake in the Pancake Swap Liquidity Pool. The rewards as well your contribution is displayed when selecting the farming pair. It is also possible to boost yield and return by using the yield booster multiplier, however it also has cost associated with the service. By clicking Harvest any generated rewards will be sent and credited to your connected wallet directly in this case the wallet with MetaMask. In order to receive your initially deposited assets in this case BNB and CAKE, Liquidity Pool tokens need to be exchanged back into the underlying assets.
