PancakeSwap has been in the DeFi space for a while now. They are the first of their kind on Binance Smart Chain and are a low-cost, efficient way to start wrapping your head around farming and staking.

First we need to go over a couple terms so you know what they mean. You can see on the left there are “Farms” and “Pools”. Farming refer to combining two assets like CAKE & BNB in a smart contract and receiving Liquidity Pool or LP tokens in order to provide liquidity to the protocol and receive tokens for doing so. In the case of PancakeSwap, the user earns CAKE for providing liquidity.

In this article we will cover staking and farming will be talked about in a future article. Of course, you’ll need the CAKE token to make all this happen so if you don’t know how to get CAKE you need to take a step back from this article to figure out how to do that first. We recommend using Binance exchange, or if you already have BSC tokens you can use PancakeSwap’s “Trade” page to swap to CAKE.

Staking refers to providing liquidity to the protocol using one token. In order to do this you need to click on “Pools” in the sidebar. PancakeSwap calls them Syrup Pools and this page is where all the single-asset staking happens.

In the top right you’ll see a button that says “Connect”. This is how you interact with the platform and once selected, you’ll have to connect your digital crypto wallet. We suggest using MetaMask and have covered how to set this up in an earlier article.

Connect your wallet and make sure Binance Smart Chain is the network you’re hooked into. Once connected, choose which Syrup Pool you want to provide liquidity to. You’ll see several options however for this tutorial we’ll use the “Auto CAKE” pool.

Auto CAKE compounds your rewards for you so you don’t have to. Manual CAKE does not and in order to benefit from compounding interest you have to click “Collect” in order to harvest your tokens and then compound them yourself by adding them back to the pool.

Enable whichever pool you’ve decided on — PancakeSwap also offers the opportunity to earn other tokens by adding your CAKE tokens to other pools.

You’ll need to confirm the actions once choosing “Enable” and the wallet plugin will popup. The “Enable” button will be replaced with the word “Stake”. Click this button and input the amount of CAKE you want to stake, choose “Confirm” and again you’ll be asked to confirm the actions.

Choosing the Auto CAKE pool won’t require your to collect your earning as it does this automatically for you. If you choose a different pool, you’ll need to collect your tokens manually.

Adding or removing tokens is easy. Simply click either “+” or “-” and follow the prompts. Please take note that there is a fee for unstaking in the first 72 hours when choosing the Auto CAKE pool.

Once you’ve completed all these steps you’ll start seeing the tokens rolling in. That’s it, you’re done. Now sit back and enjoy the passive income!

Remember there are always risks in DeFi and only use what you can afford to use — this means no lunch or rent money is to be used for crypto. Be smart and enjoy this exciting new space.

Last time we talked about a few different blockchains to keep an eye on. Today we’ll go over a few more.

Waves Tech

First on our list, and in no particular order is Waves. This project is based in Russia and was once the fastest blockchain on the block. Being a hybrid proof-of-stake protocol, transaction speeds were quick, usually settling within a few seconds.

Waves also helped usher in a wave of DeFi products like stablecoins and staking and yield mechanisms. They held an ICO in 2016 and raised over $16m at the time. Since then they’ve really held their own and continued to push the space in order promote decentralized technologies.

The blockchain has smart contracts, staking opportunities and a growing community of developers building on top it. While a bit of an “OG” in the crypto space, these guys deserve a shout out.

Fantom Opera

Fantom is permissionless blockchain built to be compatible with the Ethereum Virtual Machine (EVM). It’s a fairly new blockchain however they’ve made inroads into some unique and lucrative markets that should see the network grow over time.

Anyone use to using the Ethereum network will have no issues navigating and sending transactions on Fantom. It’s widely considered as having huge amount of potential in the race of decentralized protocols that cater to consumers needing small transaction costs and quick confirmation times.

Similar to Binance Smart Chain, Fantom has the advantage in that it’s truly decentralized versus BSC. As mentioned in an earlier article, BSC is controlled by a handful of centralized nodes where Fantom’s claim to fame is it’s truly decentralized.

Solana

Solana is currently the fastest blockchain in the world with the protocol being able to handle over 50,000 transactions per second. Founded in 2017, Solana is a mixed proof-of-history and proof-of-stake protocol designed for high throughput, or in other words — a lot of transactions.

As a matter of fact, the speed of the blockchain is so fast that it’s been a popular choice among game developers. One such game is called Star Atlas and is set to launch next year. The game will combine various technologies like staking, farming, NFTs and smart contracts and allows players to profit and earn income.

Solana is another great blockchain for people who like fast confirmation times and cheap transactions… but that should be everyone, right?

We’ll continue to see these blockchains take on more bandwidth and network effect as people start to understand the depth of these technologies. Though some of these concepts seem difficult to wrap your head around, they will prove to be extremely valuable as we progress and look to improve on tech.

In this article, we’re going to talk about different blockchains within the crypto space. This will be the first article in a series about blockchains.

Bitcoin — the birth of something new

We can’t talk about blockchains without first talking about bitcoin. This was the first blockchain and is now considered the biggest and most powerful decentralized network the world has ever seen.

In a way, the invention of the blockchain created a weird modern day gold rush. Instead of using a pick axe and a shovel to dig gold out of the ground, you plug in some computers and pull money from the electricity — sounds simple, right?

What first started as an experiment, has now become something a lot of people weren’t sure was even possible. Bitcoin has yet to really go mainstream but the steps we’ve been seeing certainly paint a pretty picture.

Over the years, blockchains have evolved and grown to offer new and innovative products. None of this would have been possible without the first blockchain coming into existence over a decade ago. The creation of the world’s first cryptocurrency also brought a new wave of financial freedom, of which we still haven’t fully envisioned yet.

Take a simple, modern day example. Huge tech companies like Uber and Airbnb really only found market fit a couple decades after the internet had been created. Technically speaking, we had the infrastructure and technology to make it happen in the 90’s, however it wasn’t until 20 years later were they actually a thing.

I believe the same can be said with regard to cryptocurrency and blockchain technology. We’ll have innovations in the future that will blow the top off these industries and unleash monetary wealth and freedom for all who are willing to put in the work to discover and take advantage of it.

While bitcoin’s proof-of-work (PoW) mining is out of the question for most of us, new innovations in cryptocurrency and blockchain technology have opened the pandora’s box of new financial products available at the fingertips of anyone with an internet connection and a device.

Ethereum — ushering in a new wave

I think it’s fair to say Ethereum and its ever-growing ecosystem deserves the next mention. Ethereum ushered in the term “DeFi”. This term itself means Decentralized Finance and really emcopasses a plethora of financial strategies, products and instruments that run on a protocol.

The development of smart contracts really leveled up the blockchain and showed the world what the tip of the crypto-iceberg really looked like. We’re now only starting to get into the nitty-gritty, to see what this technology can do but without Ethereum and the development of smart contracts, we wouldn’t be where we are today.

The foresight and understanding of these technologies allowed the creator of Ethereum, Vitalik Buterin to envision the applications within his grasp. We owe a lot of modern day DeFi concepts to the creation of the Ethereum network and thus another reason it’s deserving of this second mention.

Binance Smart Chain — Look ma low fees

While Ethereum is the mother of smart contracts, Binance Smart Chain is the long-lost relative who shows up at the family reunion claiming rightful heir to the throne.

This blockchain was brought to life by one of the largest crypto exchanges on the planet, Binance. Their strategy was simple, let’s centralize decentralized tech and beat them on price. The brainchild behind Binance, Changpeng Zhao or as most people know him “CZ”, played into consumers’ habits. He realized that most people care about convenience and speed, and less about security and privacy.

By replicating what Ethereum had created, he could improve on consumers’ experience by making everything run faster, more efficiently, and at a fraction of the cost. By making the network centralized and running only a couple of dozen nodes, their organization could essentially capture a large market segment by offering a solution for something most within the space we’re very familiar with, high transaction fees.

Regular crypto junkies flocked to Binance Smart Chain and it wasn’t long until there were more transactions done on BSC than on the Ethereum network. It took Binance about a year and a half to do what Ethereum did in five years. Mind you, Ethereum was a first-mover so the comparison doesn’t hold that much water however the network effect Binance was able to accomplish within such a short time frame was impressive.

Unique Active Wallet by Protocol — ETH, BSC, MATIC

We managed to cover a few different blockchains for you to keep your eye on. In a future article, we’ll go over a few others like Fantom, Solana and Waves and discuss why it might be worth exploring some of these.

GitHub logo white
LinkedIn logo white
facebook logo
twittter icon
©EastCode 2021