In This guide am going to show you how to yield farm on BSC ( Binance Smart Chain) and an overview of DeFi on BSC. The Binance Smart Contract Chain (BSC) is a Blockchain from Binance that is smart contract enabled and is compatible with EVM among others, these makes it easier for Ethereum app developers to move to BSC. Of late BSC has seen a striking rise in usage and is common among crypto users.
All of this interest is because of the problem with Ethereum’s high gas price.
let’s take a look at a simple borrow from AAVE that could set you back by $200 or more even if you want to wait for several hours for the transactions to complete. This does not help the small users or investors. let us say you have a million dollar portfolio, and assuming you invest 2% of your portfolio, that is 20,000 USD into a single position, Depositing and withdrawing and harvesting your yield farming assets could easily eat up 2-5% of the position size, a huge amount.
So it is not surprising that users are looking for an easy way out. BSC seems to be the first to make the move in a big way. DeFi on the Binance Smart Contract Chain has been increasing at an exponential rate, along with the price of BNB recently.
Amazingly it seems that Pancakeswap on BSC has overtook Uniswap on ETH by volumes. The volume could be manipulated, but it is still an amazingly milestone that most people in crypto never imagined some months back.
The truth is DeFi on BSC is not as mature and well developed as on Ethereum, but the reason a lots of users are moving to BSC is in search of low fees and alpha.
To be clear and fair i will like to say – most current DeFi on the Binance Smart Chain are copycats of similar projects on the Ethereum main net. That being said also most of the “food farming” on ETH were also copycats of others. For example, When Sushiswap came out with “SUSHI” a-lot of host of other food farms were simple copy-paste. So copy and paste is not something new to DeFi.
It is just simple to understand DeFi users – gas price on ETH is making it almost unusable for the small users so they are moving to BSC. Now Projects on BSC need to prove themselves beyond simple yield farming by innovating.
Now let’s get deep into how you can yield farm on BSC and let’s explore the DeFi on BSC platforms.
In this post I outlined a step by step procedure below on how to yield farm on BSC. I will assumes you already know about yield farming and DeFi on Ethereum.
Step-1: Set up
Personally I use the Safepal Wallet (software wallet) on my iPhone, so that’s what i will be using for these post. If you are familiar with Metamask wallet then go ahead and use that.
It is simple for me when I use the SafePal Software wallet because i don’t have to type in the web3.0 addresses of dApps, i just go into the App menu and touch BSC and choose from the list there and thats what am using to write these post now, so go ahead and download that wallet if you wish to follow my tutorial.
Step-2: Buy some BNB
Go to Binance and register an account its free then buy some BNB by going to P2P trading and buy some USDT first then convert it to BNB. ( watch a detailed video Here).
Step-3: Transfer BNB into your SafePal Wallet
After you’ve bought some BNB, withdraw it to your SafePal Wallet. You can confirm the withdrawal via BSC Scan. Before you transfer the funds to your SafePal wallet go to your wallet homepage and touch add token and please search and add BNB (bep20). After you have added BNB(bep20) touch the BNB icon and then touch or click on recieve and copy the address to send BNB to.
Step-4: Find out the yield farming projects on BSC
This is where the real Alpha is. These are the resources that I currently use:
Its simple to find them in the SafePal wallet app too.
Step-5: Start yield farming and sell your harvests
Like I said the transaction fees on BSC are very low and a lot of projects are currently in the “fly by night” mode, it would be wise to yield farm and sell your harvest frequently. This is especially true if you are yield farming in pool 2 or death pool.
Pancakeswap to sell your harvest. Similar to Uniswap or Sushiswap
Venus to borrow BNB or other BEP20 tokens like stablecoins, similar to AAVE or Compound.
Sign up to Binance to buy BNB and other BEP20 tokens quickly and cheaply.
Buy BEP20 tokens on 1inch.
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