DeFi Yield Farming

How to earn CAKE on PancakeSwap

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The biggest DEX on the Binance Smart Chain has always been PancakeSwap. Initially, it seemed to be just a copy of UniSwap on BSC, but in recent months PancakeSwap has gained a lot of authority, visits and total value locked. Pancake is currently the fourth most visited DEX in the world (counting DEXs from all blockchains on the planet) and it seems to work like no other, as it is rising in this special ranking almost weekly. To learn more about how to use Pancake you can read this old article of ours, while today you will find out how to earn CAKE (the Pancake token) using the much-loved farming available on the platform.

How to earn CAKE with Farming on PancakeSwap

In order to participate in farming on PancakeSwap, you will need a wallet to connect to the website such as MetaMask (with BSC network), TrustWallet or others. After logging in and buying some BNB tokens to pay the transaction fees, you will access the FARMS page where you will find all the farms available at that very moment. Now choose your favourite pool and start farming CAKE tokens. Let’s give a concrete example!

The second-highest APR pool at the moment is the ATA-BNB pool and offers an annual gain of 347%! In order to participate all you need to do is buy the same amount of ATA and BNB tokens, add these tokens to the ATA-BNB liquidity pool and start staking. For example, if you have $10,000 in ATA and $10,000 in BNB, your daily gain (at this time) will be a whopping $200 paid in Cake. That’s 1% per day of the $20,000 you put into farming. Stratospheric gains that don’t last long as these pools don’t last forever and every time liquidity increases, the APY decreases. To take advantage of such great APY it is necessary to pay attention to new pools and participate especially in the early days, when the liquidity is not yet very high and there are opportunities for fabulous gains.

On the FARMS page, you can sort the POOLs by APR and you will always find the pools with the highest yield percentage at the top. In first place now is the MARSH-BNB pool which offers an APR of over 800%. That’s a daily gain of over 2.5%! Crazy, isn’t it? Obviously the higher the APY, the greater the risk! What does this mean? That usually the APY on stablecoins is very low, while the APY on newly released tokens or tokens with very volatile prices is always higher. That’s why it’s always better to farm across several pools, splitting your capital instead of betting everything on a single pool. 

If you want to minimize your risk, click on Sort BY and choose liquidity, so you will see the strongest liquidity pools on PancakeSwap, i.e. those pools that are considered 99% safe, such as: CAKE-BNB (600 million liquidity), BUSD-BNB, USDT-BUSD and so on. In this case, however, the annual gain is from 10 to 50%, not more! If you’re playing with large sums of money, these pools can also be a great way to earn significant yields without worrying too much about the cryptocurrency price (especially the USDT-BUSD pool). 

At the moment one of our favourite pools that offers an APR of 140% is the pBTC-PNT pool, which is bitcoin tokenized on Ethereum and pNetwork, a token available on Binance and many other exchanges. The pool is not very large as it is still under $10 million, but the gains are already very high!

In the panel, you can always see the CAKE earned and you can also make the CLAIM once a day, thus taking all the gain derived from farming. Simple and fast, perhaps it’s time to try?

P.s. try to hold on to the CAKE tokens you earn from farming as CAKE currently stands at $17 while a few weeks ago it was over $40 a piece. It is likely that in a few months the prices will return to what they were before so your gain will be more than double!

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