A big appreciation to you, @imagen, for your lecture on income generation. I’m excited to go through your lecture this week and it really touched me personally because it is what I have been doing.
Thus, for the homework, I will dwell on personal experience with pancakeswap.finance, as well as a research to bring home more points. Please join me as we explore.
Introduction to Pancakeswap
Pancakeswap is a decentralized exchange (AMM) built on the Binance smart chain. It serves as a DAPP and can be accessed through crypto wallets like trust wallet, metamask, safepal wallet, among other supported wallets.
The platform can be used to buy a number of cryptocurrencies, provide liquidity, engage in predictions, lottery, among other income generating activities.
To be vivid about the uses of this platform, the following could be considered as currently running as its functions:
1.trading BEP20 tokens
3.staking cake to mine cake and other tokens
See the screenshot of the DAPP from my trust wallet below:
Although trading, farming and lottery can generate income on the pancakeswap.finance platform, for the purpose of this homework, I will be exploring the staking pool called syrup pool used in generating income by cake stakers.
How to Generate Income by Staking Cake on Pancakeswap
To start staking on the platform, one needs to buy BNB and have it as BEP20 token and then buy Cake and also have it as BEP20 token. The two tokens should be sent to your trust wallet and as long as it is there you can have access to it by connecting pancakeswap to your wallet. When you have sent the tokens to your wallet, click on Dapps at the bottom of your trust wallet.
Note: Do not send your tokens as BEP2 because pancakeswap only supports bep20 tokens. If your token is on bep2 or erc20, you will not be able to find it on pancakeswap when you connect.
It opens with the list of different exixting dapps supported by trust wallet, then choose pancakeswap.finance. when the platform opens, you will need to change the Eth mainet to smart chain on the top right and then click on connect to connect your trust wallet to the platform.
Once connected, you will see your wallet address in form of 0x…….. displayed on top right of the page. Move on to click on the menu symbol on top left and you will see pools. Click on pools and the syrup pool page will open.
Here there are different pools to mine different tokens. The number one is the autocake pool, where you can mine cake with cake and the profits will be automatically be added to the staked cake.
This is followed by the manual cake, where your profits can be harvested daily. Others are other tokens, ranging from WIN, TRX, BTT, Pbtc (a fork of BTC), UST, MATH, KUN, HYFI, OIN, Bmxx, and the list continues.
One of the important thing about pancakeswap.finance is that if you have up to 300 cake tokens, you can generate an income of $15 daily on the average. Now that there is dip and cake is a bit cheap one can invest in it. Not an a financial advice though.
Transaction Fees on Pancakeswap
The platform charges fees in few cents for every activity on it. The fees are charged from BND smart chain token and this is the reason you need to buy BNB even after you bought Cake. It is impossible to stake, unstake, harvest or trade any token on the platform without having some BNB BEP 20 token in your wallet as gas fees.
The fees ranges from $0.54 for staking to $0.06 for enabling a staking pool.
As a requirement for this homework, my autocake pool has investment of $400 at the moment and it has mined 0.132 cake equivalent to $1.914 at the current market price.
Why I Choose Pancakeswap
Since its launch on September 20th, 2020, the platform has proven to be secured with no record of theft or hack. The platform has been generating income for me from January 2021.
The deposit of my investment on the platform was not done today, that is why I don’t have the screenshot of the transfers to include here.
The use of staking pools for generating income in the crypto space is a very lucrative business, though it needs capital. It follows that the more the number cake tokens you have, the more income you can generate within a day.
For investors, I can say that pancakeswap is secured and to the best of my knowledge, I can recommend it for friends.
Thank you for reading.
All the screenshots were taken with my phone.