Crypto Yield Farming: Which protocols to stake BAT?
Having a headache finding protocols that allow you to stake BAT? This article highlights the top 2 platforms that solves that problem.
New to Yield Farming Protocols (YFPs)? Please refer to my previous article here.
If you are reading this, this must mean that you are already the following (else, do yourself a favor by downloading the Brave Browser here. You can thank me later):
- A Brave Browser user
- Have knowledge about the BAT Project
- A deep understanding on Yield Farming Protocols and know your way around the Ethereum & Binance Smart Chain Networks
- Have a high risk-appetite and are looking to seeing your crypto, like BAT grow even faster
Enough talk, the 2 platforms where you can stake your BAT for high returns are BakerySwap and ApeSwap. These protocols are based off the Binance Smart Chain aimed at countering the effects of high gas fees & transaction times that would turn away small-time investors from YFPs.
BakerySwap is an open-source DeFi protocol that lets users exchange and swap tokens like Uniswap. It is a DeFi based DEX, which is the first popular food-themed DeFi project built on the Binance Smart Chain (BSC).
Adopting an Automated Market Maker (AMM) model, many experienced users would be familiar with the interface as it is reminiscent of UniSwap.
For this article, we will focus solely on how you can stake BAT, to earn more than 100% ROI on your BAT!
Sounds simple? It actually isn’t, but I will attempt to ELI5 it
Step 1: Connect to the Binance Smart Chain (BSC)
In this step, there are 2 ways that you can obtain BNB (BEP20, or BNB based on the Binance Smart Chain).
The 1st method is with a bridge, where you utilize MetaMask & add the BSC to your list of networks.
The 2nd method utilizes TrustWallet, a DeFi Multicoin wallet.
Tutorials for both methods are provided below:
Step 2: Purchase ERC20-BNB & convert to BEP20-BNB
Already have some BNB? Good. Else, purchase BNB on Binance. For this article, I will be utilizing Metamask for the conversion of ERC20-BNB to BEP20-BNB.
At this point in time, you should have already added the BSC to your Metamask. REMEMBER, it must reflect the above, else you will be committing a very fatal error!
Step 3: Withdraw your BNB via BEP20
Copy your Metamask BEP20-BNB address to Binance AFTER selecting the BEP20 network. You can send a small amount of BNB for testing before sending bigger amounts over.
Step 4: Login to BakerySwap using Metamask, via BSC
Now that we have some BEP20-BNB, we can proceed! On BakerySwap, we are going to focus on the BAKE-BAT pair for us to earn BAKE.
At this point of writing (13 April 2021, 3:37PM GMT + 8), 1 BAKE = USD$1.83.
How to do so? Continue reading!
Step 5: Swap your BEP20-BNB for BAKE & BAT
Click on Exchange at the top left corner. Proceed to swap your BEP20-BNB for BAT, then swap for BAKE.
Step 6: Add your BAKE & BAT to the liquidity pool to earn BAKE-BAT LP!
Now that you have BAKE & BAT, add them to the liquidity pool to earn BAKE-BAT LP, so that you can stake it to earn more BAKE, as seen in Step 4!
Step 7: Add your BAKE & BAT to the liquidity pool to earn BAKE-BAT LP!
Click ‘Earning’ on the top left-hand corner of the website. Select the BAKE-BAT pair, and you will come to this page above.
Approve your BAKE-BAT BLP & the Metamask extension will appear requesting a confirmation on your transaction.
Voila! You are now earning BAKE on the BAKE-BAT liquidity pair. Let’s proceed to ApeSwap.
From DappRadar, ApeSwap is an automated market maker (AMM), yield farming, and staking platform on Binance Smart Chain. Interestingly, the application was actually forked from PancakeSwap and retains much of the same useability. BANANA is the native currency of the ApeSwap platform and allows users to stake, pool, and earn more BANANA tokens with an APY up to 600%.
Feeling hungry after seeing so much food? Let’s skip to the delicious bits!
The steps to stake on ApeSwap are mostly similar to BakerySwap where you have to purchase BEP20-BNB.
I will not be going into full details on how to do so, but basically, there are 2 pools you can stake your BAT on.
- BAT-BNB Pool
- BAT-ETH Pool
The image above gives a good flowchart on how everything works.
ApeSwap is a little bit more advantageous in comparison to BakerySwap as you need to perform only 1 swap if you are staking for the BAT-BNB pair to earn BANANA.
If however, you are utilizing the ETH Pool, you would have to perform an additional swap of your BEP20-BNB tokens to ETH & then proceed to add to the liquidity pool to earn LP tokens, for further staking & earning BANANA.
Hopefully this article has given you an extensive, ELI5 insight on how you can earn high returns on your BAT and other currencies in Yield Farming Protocols. I attempted to find other BAT pairings on other protocols, but couldn’t do so and saw these 2 platforms with one of the best returns.
Also, do take note that even though the fees on BSC are low and transactions are instantaneous, the fees can add up if you do not know what you are doing.
For example, withdrawing BNB (ERC-20) to BNB (BEP20) constitutes one fee. Swapping tokens constitutes another fee. Adding to LPs is another fee and finally, staking your LP Tokens is again, another fee.
Remember to always DYOR before investing large amounts.
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**Disclaimer: What I am providing is not financial advice. The thoughts expressed here are meant for your own research purposes. Always, ALWAYS conduct your own research into the variety of options out there before you come to a final decision