Binance Smart Chain DeFi

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For the past 2-3 months Ethereum fees have gone crazy forcing many traders to leave the famous smart contract platform and turn into Binance Smart Chain which currently has ridiculously low fees. BNB is constantly growing bigger and bigger reaching the ATH price of 500€ and many BSC Dapps (though Binance Smart Chain isn’t really decentralized mind you) have been growing rapidly giving awesome opportunities for making money.

Although my purpose is not to give financial advices, i wanna post some of my experiences with some of the most famous BSC Dapps. Most of the following experiments have been done using free airdrops like the SafePal SFP airdrop for HW users in January which it got tripled in value in just 24 hours and then managed to triple it using Pancake and double it using Ripple! (that’s x18 in 2 months). Also the UNI airdrop from back in September 2020 which now worths x8 was of great help and one of the best airdrops ever. In the end of the day, the only real way to make a small fortune is to be one of the few early adopters and long term holders.

The SFP airdrop from January 2021 gave me awesome profits,
DO NOT EXPERIMENT WITH DeFI USING YOUR HARD EARNED MONEY.

Do not experiment with your hard earned money!

BINANCE

The father of Binance Smart Chain and the most successful exchange couldn’t be anything less than a great way to increase your income. I’ve only bothered with old school trading which usually offers two options: massive gains in just a few minutes or massive losses in just a few seconds : ) You will always find some coins that people use for fast profits trying to buy and sell after a few seconds / minutes hoping for a big enough difference (order the assets inside the Market option by 24h changes, anything with a percentage of +20% and more is worth playing with). If you go one step further and choose a coin with a 2 digit value after the decimal point, you will have many opportunities to double your money before you can even blink. That’s of course until the price starts to fall faster than you can place a sell order, watching your money going to waste. Yes, that’s how trading goes. You can of course play it safer and just try for a small and steady salary instead of hunting for big gainers.

The order screen with the buy / sell orders from other traders.
Staying in this screen for an hour watching those numbers go up and down will make you realize
better than anyone that the price of an asset is a matter of demand.
In the right side of the screen i’m placing a buy order of 22830.2 MITH, costing 0.143$ each (a total of 3265$).
I’m buying 20442.8 MITH for 0.134$ each, and selling them after 17 minutes for 0.16$ each.
That’s a 20% profit (around 550$-600$ in a few minutes).
You can also make multiple small profits since most assets go up and down multiple times
while staying in the same price range.
These are profits turned into stablecoins that i’ve made in an hour from
placing buying and selling orders. (915$ in an hour)

PANCAKE SWAP

Pancake Swap is the main player in the Binance Smart Chain and the equivalent of UniSwap in the Ethereum.

It offers various ways for making money and you can also create a profile and buy NFT to use as a profile picture.

The simplest way to make money is by staking Cake to earn more Cake. You can also stake Cake to earn various other assets but i consider Cake for Cake the safest long term option since this token has huge value potential. Currently you can get around 110% per year of your staked Cake, this means that if you stake 100 Cake, you will make 110 more in 12 months. You can withdraw the earned ones whenever you want (Harvest) or use them to increase the number of your staked ones so that you can earn even more in a year (Compound).

In the above picture i’ve staked almost 300 Cakes and APR (Annual Percentage Return) is 112.38%.
This means that if APR remains steady, in a year i will have 300 + 337.14 = 637.14 Cake.
I can withdraw the 0.089 earned Cake if i want via Harvest option, or add them to the staked ones
via the Compound option.

Another way for making money is to become a liquidity provider by participating in one of the liquidity pools.

By providing a pair of tokens in a pool (for example CAKE / BNB), your gains can be much higher, but the risk is also much higher because of the so called impermanent loss, that’s why it’s always wise to prefer liquidity pools that one of the paired tokens is a stable coin, so you will only have to worry about one price and not two. Do not be fooled by the high returns that many pools have. Whenever a new liquidity pool is up, you can see crazy APR that can go as high as 20000% but it usually takes no less than an hour to fall down to 200%-300%. Still, the amount of Cakes you can earn is many times faster than a simple staking.

Providing SWTH-BNB liquidity.
Great APR, right? Well, it wont stay at 1475.63% for long and you’ll also have to worry about
impermanent loss.

You can also take part to the lottery by buying one ticket (you need to spend one CAKE for it). The ticket will give you 4 random numbers and if the lottery results have some of your numbers in the same position, you earn a good amount of CAKE (you can completely change your life if you have all 4 numbers in the same position).

There’s no limit in the number of tickets that you can buy per lottery.
Be careful not to waste all your money for earning nothing.

PANCAKE BUNNY

Pancake Bunny is another DeFi that promises to help you make more CAKE. Although this is a bit misleading, it’s true that you can make more money from this service.

What happens is that by staking your CAKE there, you earn two different tokens, CAKE and BUNNY. Your earned CAKE are actually less than the ones you would earn by staking in Pancake Swap, but combining them with the value of BUNNY token, then you actually earn more. There are some catches you should be aware of:

For starters, every time you add CAKE for staking, you wont be able to withdraw your whole staked amount for 72 hours otherwise the service will hold a small percentage of your staking.

Pancake Bunny also has auto compound, this means that once per 24 hours, your earned CAKE will automatically be added to the staked ones without having to spend fees to do it like in the Pancake Swap. BUT, you can only compound your earned CAKE and not your BUNNY and if you want to withdraw your earned BUNNY to take the profit, you’ll have to withdraw your earned CAKE too. So you end up withdrawing both, swaping earned BUNNY for more CAKE, and then send both CAKE qualities back to the Pancake Bunny service for compounding, which cause the 72 hours counter to restart.

Staking 120 CAKE.
The 72h counter wont let you withdraw without losses but i already made 7.5$ in 38 hours
from the earned CAKE & BUNNY. Earned CAKE is automatically compounded once per day to the staked total
but remains available for withdrawing (together with earned BUNNY) without touching your original staked CAKE.

JULSWAP

JulSwap is another DeFi with some good options for earning money and has not one, but two tokens, JulD and JulB. I was using JulSwap liquidity pools for 2 months straight making great profit till i decided not to sign in for 2 days and got recked by impermanent loss because of JulB (talking about luck) and the contract of many pools expired at once. JulB lost almost half of its value in just a few hours (from 150€ down to 80€) and JulD lost 80% of it’s value in a month. Still, at current price which is around 0,18$ for JulD, i consider it a bargain.

There are some things though that i do not like about JulSwap: Firstly, i’ve seen people getting useless airdrops from JulSwap like 0.1 JulD and 1 SBS. Then it’s the fact that thousands of twitter profiles are using JulD token for a profile picture, not even Bitcoin has so many admirers which is weird cause when i was providing liquidity in there, my pool had a high APY for more than a month which means that it doesn’t have that many visitors as it seems to have.

I only mention this service because at current price there’s profit to be made from its governance token but if you want to provide liquidity in it, better avoid it. Staking is also a bad choice since there’s very small profit to be made, it’s unacceptable not to have a JulD staking for earning more JulD (it’s only available (at least for now) for people who own some special NFT).

I can see moves upon the right direction in Twitter but at current state there’s not much to see in there that you wont find somewhere else.

CONCLUSION

Binance Smart Chain DeFi is still at the very start of its journey which theoritically means that many current defi token players will give great profits long term. Keep in mind that staking your assets in a DeFi is dangerous since you actually give your money to someone else and you can always lose them before you make any profit and withdraw them back to your wallet.

My advise is to do your own research and go small in 1-2 of them and remember that you can use your earned tokens to increase your portfolio with even more assets.

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