How to Stake Your Cake (and eat it too!)
Staking Pancake Swap Token
Binance Smart Chain (BNB) has rapidly grown to a massive competitor to Ethereum. It boasts faster transactions that cost less to process, while operating on the same virtual machine as Ethereum. It is a layer two solution that is rapidly draining market cap away from ETH.
Pancake Swap is the leading decentralized exchange within the Binance Smart Chain ecosystem. One can "pool" their CAKE token to receive reward.
Step One: Acquire CAKE
Binance is my preferred method to acquire the Pancake Swap native token: CAKE. It is easy to obtain via the spot exchange on Binance with BUSD. It is also available via the Pancake Swap DEX and Kucoin.
Part of the reason why I am so bullish on CAKE is because it is a direct sympathy play from the Binance Smart Chain momentum. If you believe in BSC, then in theory, Pancake is a nobrainer.
I consider this play relatively equivalent to Ethereum and Uniswap. It is analogous because one is the platform, and the other is the DEX.
Here is a chart showing the correlation between BNB and CAKE. How interesting!
Step Two: Move CAKE to Trust
Trust is the Binance external mobile wallet. Very easy to use, and ensure that when you move your CAKE, that you export it from Binance as BEP20 (smart chain enabled) and to your BEP20 CAKE wallet:
BEP2 = standard BNB network
BEP20 = binance smart chain - AKA can interact with dAPPs
Always double check your addresses and network type!
Step Three: Setup Pancake Swap
- If you are an iOS user, you will need to enable your Trust Wallet Brower by typing trust://browser_enable ; then scroll down until you see the pancake swap exchange on your list of available applications.
- You'll need some residual binance smart chain to cover txn fees, so ensure you've got ~$3 to cover the various fees as follows:
- Need to connect wallet to Pancake Swap Dex (50 cents)
- Submitting of your funds to the Cake Pool (1 dollar)
- Lastly, you will need some to finalize and exit the positon
Step Four: Enter CAKE farm
Navigate over to Pools on the left hand side menu..
Esseentially, by pooling your funds you are allowing Pancake Swap to utilize your liquidty and facilitate transactions within the decentralized exchange.
One could think of it like loaning your money to the bank in order to facilitate operations.
Two kinds of Pools exist for CAKE stake:
First, is manual. You get paid in CAKE and need to manually cash out, or compound it to the pool.
Second, is automatic. The rewarded CAKE is automatically compounded into your existing balance. This is a newer feature, but what I am using at this moment.
.1% tax applies if you withdraw before 72H
2% commission fee to APY reward for txn fees.
Step Five: Profit!
- Crypto is the wild west, and just about anything can happen. Don't get sucked into aggressive APY returns on Pancake Swap. The majority of the features on this website are not beginner friendly.
- Keep it simple. Stick with what you understand.
- Greed is toxic. Act accordingly.