Intro for the Quick Starter: Farms &Pools and Staking & Vaults (1/2)

We will look at some high yield Farms, Pools with high APR and Vaults with high APY. First part will start exactly with this!
Details and explanations follow in part 2.
Yes a bit upside down because the focus is on a quick start!

The following examples are on the Binance Smart Chain (BSC) — so if you are prepared for this, you can learn and start earning in less than 10 minutes!

Pre-Requirements:

You need to have a wallet set up with access to BSC — here is the link to a short beginners guide for this…
And of course you need to know how to get funds to your decentralized MetaMask wallet. If you have a Binance, Crypto.com etc account this is just a withdrawal away!

Disclaimer:
The information shared here is for your education and to be seen as examples. It is not a financial advice. It can be a starting point from which you can technically learn and after you did your own research can decide to invest or not.

Part 1 — Where to earn money?

Trading: The price changes of Tokens can of course be used to make wins (or losses!) by trading a Token.
Earning: But there is also the possibility of using your Tokens in a way of “lending” them and get rewarded for this. Like getting a “yield” as if someone would pay interest for money that was lent / borrowed.

In reality getting rewards from Staking is quite complex. To understand the underlying concepts I recommend this article as it gives a pretty good overview: https://www.businessinsider.com/staking-crypto

Shouldn’t be a surprise that there are quite some technical aspects at work on the blockchain. I may go into more details in a follow-up — just leave a comment so I know it is of interest.
Anyways: most of the time people are just interested in high returns, don’t care about the technology but get confused with the different offerings.
So I decided to start at this point here…

This is an example of a farming page and you can see some impressive APY / high APR values there:

Screenshot taken 2022–01–26 — source: BiSwap

By the way —use this link to register and you can save 50% on BiSwap!
(Because if you use this link to register your wallet, you can get 50% of some of the fees back you need to pay when interacting with farms — see their referral program for details)

For this kind of “Farm” (Yield Farming) a Liquidity Pair is created which means two Tokens are combined / linked together. Typically the Liquidity Pair is built with the Token to provide Liquidity for and one (sometimes more than one) additional Tokens — usually standard Tokens of the Network (Binance Smart Chain: BNB) or (FIAT) Stable Coins (like USDT aka Tether) like in this example:

Same token paired with “stable” USDT and “volatile” BNB — why? See Part 2!

Usually a Stable Coin (like BUSD or USDT) is less risky as only one token of the Pair moves in value, but there is also a lower APR / APY coming with this.
For more details and thoughts on this see Part 2.

HowTo — step by step

Let’s say you would like to invest in this Farm by providing BSW and USDT. How to do that? Well, it is super easy:

  1. you need to unlock or connect the wallet on the farm page — if you do so by using this link safe 50% on fees ;)
  2. Navigate to the “Farms” on the page
  3. Pick the Farm you like most (in the example: the Stable Coin USDT and the token of the exchange BSW) and click on “Details”
  4. Then it is easy to follow along this flow:
  • Enable the Farm:
    click the button to allow interaction of that contract with your wallet.
  • Get LP:
    Think of getting a LP-Token for USDT + BSW worth for example 100$.
    To “Get LP”, what basically means “build this LP-Token” you need to get / have USDT and BSW in your wallet.
    Of each you need 50% = 50$ based on current value in your wallet.
    In the “Get LP” step the two Token each worth 50$ get combined to a “LP-USDT-BSW” Token now worth 100$ and now is available for
  • The available LP will be shown and you can then Stake / Deposit the LP into the Farm
  • After a while you will be able to “Harvest” what you earned

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https://instabio.cc/Seeker--of--Wealth

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Seeker of Wealth

Seeker of Wealth

https://instabio.cc/Seeker--of--Wealth

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