Comprehensive Guide to Liquidity Mining on Binance Smart Chain

hello everyone uh welcome to the 25th episode of my uh crypto series uh in episode 24 we

talked about uh decentralized finance and especially how you can do liquidity mining in

decentralized finance we spoke about the advantages of doing liquidity mining better than how it is better than

bitcoin mining or any computer based mining operations that are more expensive and probably the return

of investment in liquidity mining is so much better and easier compared to the bitcoin mining if you didn't watch

it please understand the video please understand what is d5 mining before we

get into this video so we talked about how we could do liquidity mining better using the

binance marching and today we're going to be doing a full end to end demo using the binance

marching and one of the top liquidity mining providers or top decentralized exchanges called panzcx

web which is using binance smart chain full and full and we'll do a complete end-to-end demo even if you

have never done crypto before you'll be able to understand most of these concepts so let's get into

the video so obviously we'll start with the disclaimer i'm not a financial advisor or an investment expert none of

my videos are financial advice or investment advice this is a disclaimer

and also if you are if you are watching my videos you would know i always say that don't

send your money to people who call themselves as professional brokers or investment advisors none of them are

true all of them are scammers uh quick recap what we're going to see today is a quick

recap of what liquidity mining is even if you've watched episode 24 and we'll also go through metamask sign

up you know whatever is required for doing liquidity mining today so we'll start with a quick recap so in

episode 24 if you had seen it i showed you what liquidity mining is all about you

know broken it down in very very simple terms for people who don't understand what

decentralized finances or what liquidity mining is i explained with very very simple examples what liquidity mining is

and how everyone can become a liquidity provider and earn a passive income in crypto

which was not something that was easily possible for small investors like us before

and most importantly what we saw was a basic illustration of what is an impermanent loss this is a

very very critical concept that you need to understand because it is one of the biggest risk in

liquidity mining and what we saw was that how there is a there is a double reward structure

with mining rewards which is trying to overcome this this impermanent loss so big warning

before you proceed is that you know if you did not understand impermanent loss watch the video again

write it down and you know make sure you understand impermanent loss before you go proceed with the

video because that is extremely important another warning is that liquidity mining can be extremely

addictive um you know i generally don't trade too much like i have explained in episode

15. only on rare occurrence otherwise i buy a crypto and i hodl

i keep it for a longer time and it's easier and uh that's probably the best option for most

people but here there will be a need to chase yield higher yield pools

and you will probably often switch liquidity pools if you switch liquidity pools multiple times on the same day

because you are addicted to this liquidity mining it could cause significant loss i mean for

example one pool could be 500 and then if it reduces to 300 percent you want to jump to another pool

then it will result in a significant loss you need to keep your liquidity over at least in a few days

for you to get better yield out of it instead of jumping from one liquidity pool to another liquidity

so we will explain that uh later but uh liquidity mining as a concept uh was introduced by uh the smart

contracts of ethereum ethereum virtual chain we spoke about it in a previous episode

on the erc20 platform but uh we saw in in the previous video how it is extremely high like you know even

sometimes like 100 dollars 150 dollars like in lowering we saw it cost 200

to get into the liquidity mining just as an entry fee alone so erc20 has a concept even though it's

existed for a long time we saw how really congested and slow it is and what we spoke about last video was that

binance had introduced a smart chain ecosystem called the brands marching now even though binance

had a blockchain of their own for a few years now uh through their crypto token standard

called bep2 which bnb is their own coin like was there excess wrx bmb is their own coin

the binance smart chain main net went live in september 2020 about six months back roughly

and since then the growth of the the binance marching bsc at this co as it is called and the bep 20 platform

the token standard the new token standard that they created in decentralized finance has been

staggering and unprecedent i mean there's been nothing like this um this kind of a smart chain uh

adoption i would say uh in the recent times in crypto this kind of you know changed the

landscape of decentralized finance where it enabled small retail investors like us

to get involved and not just the big whales and you know the the rich who were participating in the ethereum

based uh liquidity mining before so today we'll be looking at you know if you look at the fee structure of the be

p20 and the binance smart chain and most of the fees is so low and you will be able to easily compare it so

uh binance had actually created this binary smart chain in collaboration with a lot of big names and they had vasirax

as one of the biggest collaborators as well because verzerx is obviously owned by binance so

there are more updates that are expected on the collaboration partnership soon and it could happen that those exchanges

and their tokens can also be issued on on binance marching like wrx could be issued on

binance marching which could be one of the reasons why wrx is also picked up um

in in value quite a lot recently you know it has jumped almost like 100 times in the recent

few months people who had bought wrx based on my epithelia episode 3 video had made like 50 times 60 times

profit so um that's one of the reasons and if you compare it the bse was built to

be many times faster many times cheaper than ethereum how is it faster and cheaper

like you can take 2g internet as an example if you compare ethereum was like a 2g internet on a 64

kbps you know seven eight years back when internet was so expensive and it was not affordable for everyone

you know 10 years back it was like in a thousands and thousands of rupees today however you can get 5g internet or

4g internet for like 1gbps broadband at dirt cheap cost literally i mean in uk for example you can get it for next

nothing um some things to know right so um gas fees on transaction fees and finance

unlike ethereum is expected to be always kept at a very very low rate so for example

they are saying that they are trying to keep it under one dollar and in fact most of the transactions that it

did were like either three cents or 15 cents on an average and it was never probably exceeding 23 cents

and what they've done is they are regardless of the price that goes up they are trying to keep the

gas fees low and they keep reducing the gas fees when the binance price goes up as compared to ethereum

when where they didn't do that because of which the prices are the gas fees kept

increasing to 100 200 dollars when comparatively ethereum it takes like you know hours to complete

whereas bsc takes like few seconds to complete the block is very very quick and the

transaction speed is amazing as a result of this technical advancement in the

in the blockchain and smart chain a lot of d apps d app is a short form for decentralized

applications a lot of d apps have been created uh just like uni swap your new swap is a d app right

loop ring is a dia but they are all created on the ethereum network and they are great dex platforms

but similarly uh people created a lot of d apps for uh finance smart chain as well

there were a lot of early adapters even binance themselves included an integrated dex

integrated decentralized exchange and an integrated dex eco ecosystem they created it on

their own but a few third-party dex platforms they utilize the finance smart chain

but much better than binance themselves and one of the top performers is called as pancake swap exchange and pancakes

factors change when you compare it uni swap for example was started in 2018

and uh binance was only launched in september 2020 like i said along with the finance marching

it took two years for uni swap at that point to come to our total value log which means that's the total money that

is staked in uni spa about two and two million two billion dollars

but within six months pancake swap has already gone from like zero dollars it had nothing

uh when it started six months back it has already caught up with uni swap so uni swap was today

when i made this we when they made this content last week new sub was sitting at 7.75 billion dollars

and pancakes were already had a total value logged off nearly 7.5 billion dollars so

it had almost you know caught up or even overtaken probably when you see this video

pancake swap could have overtaken uni swap was the world's leading decent realist exchange

so this is phenomenal and uh we will today what we'll do is we'll do an end-to-end demo of

what is pancake swap how you can use it and there are lots of ways that you can trade on the pancake swap exchange so

today i'm going to be showing you one of the common and easiest ways using computer which is

using a non-custodial d5 wallet called as meta mask there are a lot of ways to send crypto

to metamask but today what we're going to do is for people in india and outside india we're going to

have two methods if you are outside india you can sign up and binance obviously this is not

working in u.s is what i am being told but you can sign up on binance you can buy bmv and cake and you can

send a cake is a their own cryptocurrency like wrx for uh xerx

cake is their own uh cryptocurrency and you can send it to metamask easily you can connect your pancakes to

metamask and then you can set up and start trading it for people in india slightly longer

method where you sign up in wazirik's and you sign up in binance using the same email id and you can connect it

together i'll show you the demo as well and you can transfer from wazirex to binance instantly and free

without having to go through addresses or anything basically it's a bridge that gets connected between resurrection

venus because they are owned by the same company finance so um then you can easily

once you have transferred usdt from wazirex to binance for free then you can follow the same process you

can buy bnb and cake in binance and you can send it to metamask and you can you can start using

pancakes web in the normal way so from that point onwards after you have transferred usdt to

binance for free from that point onwards the the process is the same for

anybody whether in india or outside india so that's the advantage of decentralized finance once you enter

into that ecosystem it doesn't really matter which country or like i said in my previous video it's

borderless so um how are you going to send crypto we're going to sign up in wazirex and

the detailed demo of how to sign up in wazirex in the demo

was already done in episode 3. that's the only thing that i'm not going to show today

how to sign up in verzerex and how to enable your bank account how to deposit that detail in complete

detail for beginners i have done it in my episode 3 i will give you the link for that video as well

you can go and have a look at it and there is a link to sign up as well those links are all referral links for

vasirex and binance alone those are referral links decentralization there is no reference

where you can you can easily click on the links contents of the demo i'll give you the

content of this demo in my as a timestamp in my video as well i still need to work on the the

timestamp process a bit quicker but i'll try and put this timestamp so that you can

easily skip to that point if you want it so the buying and sign up all of these

processes you know how to add binance uh to smart chain to the meta mask those are all small

small videos you'll find uh in in youtube in multiple places i'm trying to combine everything into a single

video for people to refer to as a quick guide um so wazirex obviously like i said

that's the link to sign up that's a referral link but you can go and line up directly as well

but if you want to see that demo you can click on that demo so today metamask pancakes finance everything i

have given a demo so binance if you click on the the binance link you can this is also a referral link you can

directly go sign up if you don't want to use it so if you click on it it will ask you for an email address and sign up

and once you you do that they will send you an email address they'll send you a code for account

verification you enter it and that's it you don't need to enter anything at that point if you are inside

india for example what you can do is you can immediately connect your z-rex you don't need to enter your kyc

or you don't need to do a kyc again if you already set up your x account so you go to settings and click on

version x and then it will say that connect version x the button will be enabled

so you click on connect xerix and if you had used the same email address that will be very very

efficient so there will be a wazirex window that will open which will say log in via binance so now

the the login details that you just set up in binance um use the same login details and we'll

say that it's going to establish a bridge between your binance account and buzzer x account

so it is very very fast it takes like couple of minutes to do once you have created

the binance account they will send you a one time password to the same email address

enter it and then it is connected now you will see a new option called transfer funds to binance

from your xerx account by using this you can transfer instantly and fast remember a lot of

people are still not using the wrx 50 fees and they came back to me so remember to use the 50 fees option so

if when you click on it you can you have a list of cryptos that you can send there's about

15 20 cryptos that you can send for free from from 10x to binance on the other way

around but i recommend using usdt so this is the option that i told you about where in settings you have the fee

option where you can pay using wrx and you get a 50 discount that's like almost you know

saving a lot of money uh over the long period of time so we're going to buy

usdt and uh i'm going to at this point i'm going to buy like 120 worth of usdd and i'll tell you why so

once i've bought 120 of usdt i go to the transfer and i click on transfer to binance enter the

authenticator code i shown all of this demo in my episode 3 as well so

and then you can transfer money to binance if you are directly registering in binance you can enter your debit card

credit card details and you can click on continue it will ask for um i think about you know 1.8 percent fees

which is like if you are entering 50 dollars like 90 pence fees that you need to pay

um 50 cents 50 pounds 90 pence that i paid but once you have done that if you go to

buy usdt you can actually use the cash balance i recommend depositing money as a cash

balance into your account and then using that to buy your crypto as a two-step process

so um now that we've done it we've bought it using our debit card and credit card now you can also use it

do it using faster payments which is using your bank account which is free of charge which is there

is no transaction fees for it you see the transaction fees is zero i don't know if it's the same in all the

countries but in uk currently it is zero so what they will do is they'll give you a short code and account number an

account detailed reference with a reference code you open your bank account like i am

opening my tsb bank account on my mobile app and then i am paying like a normal payee

i enter the reference code that is very very important once you enter the same reference code

within a few minutes it took me about you know 20 30 minutes but within a few minutes it kind of transferred so now i

have 120 dollars of usdt that is transferred i'm going to first buy bnb

so bnb is their own coin binance own coin like wrx and that's thing so now i have 120 of usdt

what i'm going to do is uh uh i'm going to buy roughly about 40 worth of us 40 worth of bmb uh so i'll

tell you why the the amount is you can vary your amount depending on how you want to use it

so now i have bought forty dollars worth of uh usdd now here itself i'm going to go to the

exchange and select cake i'm going to buy 80 worth of cake and i'll also explain why i'm buying 80

worth of cake so uh i'm going to install metamask now so go to the description click on

metamask.io and that link will open up so you can directly go to metamask io as well this is a browser extension like

previously d5 wallets we installed it on our mobile phone this is a browser extension that we are

going to install that you can use a d5 wallet on the computer itself so like any other browser extensions that

you have used right like a lot of browser extensions are available most people who use internet explorer or

any chrome or anything they will know so i am using chrome today so once you enable it it will open up

like this and then it will ask you whether you are new to meta mask and you say yes i am

new to my damask and create a wallet so this is very similar to how you created a wallet in your d5 wallet in

your decentralized finance we saw it in a piece of 23 we saw it in episode 24 as

well so um i said no thanks to collecting data anyway they are only going to

collect anonymous data but anyway i have said no thanks for the statistics collection so

it will ask you to set up password so you need to remember this password every time you close the browser and open the

browser when you access meta mask it will ask you for this password here is where it

will ask you for the 12 word phrase this is going to be very very important write it down in multiple places like i

always say about d5 wallets there is no login to a centralized location nobody can help you

if you forget this that's it your you've lost your wallet so make sure you write it down

and you you keep it in multiple places and that's it once you've done uh the the validation

the wallet is now ready now by default the metamask d5 wallet is set up to ethereum main net now what

we are going to do is we are going to change it to binance matching now there are multiple

ways of doing it i am using metamask because it is one of the most popular and

most convenient ones so what we are going to do is we we're going to click on that

the dot and we're going to go to settings and then networks so in networks we have only ethereum

network and some of the other test networks we're going to add a network and we're

going to add the binance smart chain network to the meta mask so it is only using the

ethereum for now we are enabling binance marching so where do i get the binance marching

details from how do i enable it i have given the link for that as well where binance themselves

have given the the three or four details that you need so network name is actually customized

but what you need mainly is the rpc url chain id and symbol so rpc url if you copy and you paste it

in the meta mask in that add network option um it will automatically

populate everything else so network name i'm keeping same as what binance recommended but you can keep it as

binance smart chain on smart chain whatever you want to keep it that's just a custom name

so rpc url i copied chain id i'm going to copy and also the block explorer i'm going to

copy i'm going to copy and paste everything into this so that i don't make any

entry mistakes so currency symbol i'm going to keep it exactly as binance bnb um so just use exactly what is

mentioned in those four fields that's all our five fields basically so it takes you like literally 30 seconds

to do and once you've done it make sure you've done it correctly and click on save that's it

now the finance smart chain has been enabled and you will notice on the top that from

ethereum mainnet it has now switched to binance marching or smart chain in short and you'll notice that there is only one

address and that is your address for all your crypto currencies like in uh in normal scenarios

you will have a separate address for every cryptocurrency in finance marching it's a smart contract which means that

every crypto uh will be using the same address using a smart contract

so what we are going to do is we are going to add a token so cake is not enabled by default some

tokens are already enabled by default and you can just search and add it cake is a custom token that we are going to

add pancakes own exchange so what you do is you go to the bsc scan

and you search for pancakes pap and then you will get a pancake swap token you can copy the smart contract

and once you copy the smart contract address the contract address when you go and place it in the contract

address it will by default say that okay this is what you want to add this is a new token that you want to add

one of the easiest methods is that you have to coin market cap coin market cap is like our coin stats

it's a a good aggregator web page where if you search for the pancakes map on the coin there is a button called add

to multimask that wolf icon is there so if you click on that wolf icon add to metamask it will automatically

open your meta mask and will say that it is suggesting add to tokens click on attribute token by this

way you will not make a mistake of copying smart chain contracts and all that so it is an

easier way so i prefer this way now that you have done that it is now added to your metamask wallet

now we are going to transfer bnb so we are going to go copy the address in metamask and we are going to from b

and from binance we bought b and b right so we are going to transfer it to

metamask so you copy the address and then you go to binance and in binance you select your bmb i have 40 worth of

bnb i click on withdraw so in withdraw it asks me for two options so first i am

going to paste the address here whatever address that i had copied from my from my meta mask

and then i'm going to select make sure you select the branch marching if you select the binance chain which is the

older network before the smart chain came it won't transfer your money properly so

make sure that you select the finance margin and you notice the fees is only like

you know 23 cents like i said it's always kept very very low as compared to ethereum where the fees

was like you know thirty dollars forty dollars so it will ask for authentication code

from mobile and phone once you've done it your withdrawal will be submitted so and

you can see that the withdrawal is very very quick as well so i'm going to do the same thing for cake

cake also the same address exactly same address that you copied um and then you're going to say finance

marching the difference is that because the smart contract whatever currency you send to that

address it will automatically detect what contract it is going to go to and it will give you that token balance

so cake again is like you know 21 cents here so i'm going to send the uh 80 worth of

cake that i um had bought in binance earlier now within like you know two minutes

roughly one or two minutes it is now transferred into my metamask so whatever i transfer from

finance has now come into my metamask balance now i'm going to set up a profile in

pancake swap finance this is an optional step um but the reason why you need to set up a profile

is because it enables you to participate in ifo and it gives you a lot of rewards

and there are additional benefits of doing it but if you don't want to do this we can skip this step

but connect to matamas this is important click on the connect and it will launch the metamask

connection authorization window and click on connect don't worry uh meta mask every time you want to spend

it will still ask you for a connection you're only establishing a bridge between your meta mask and your pancake

spa now like i said click on that profile icon and you can start creating a

profile you can skip this step if you don't want to have the additional benefits like ifo

participation free crypto and all that but um i recommend doing this because i have done

this and i i found this beneficial so but it does cost you at this point 1.5 gig

which is roughly about 40 dollars i would say so you can select

any profile in that and this is an nft so we'll talk about non-fungible tokens in

other episodes but basically it's like you are buying a label kind of thing or an icon kind of

thing for profile picture there is no option to upload so you are buying a profile picture lets say

so its uh there is a transaction fees of about 16 cents like i said transaction fees is always kept to that

amount so click on confirm and you are now basically buying using one cake the cost

you see that at this one cake which is roughly at that point when i did that episode it was about 20 to 23 dollars

so it is standing around 25 that's the value of cake so it's asking me to confirm and then it

will take one cake from my metamask so i had three cake that i bought with

80 now i'm spending 25 on creating the contract then it will ask me to use that same

thing that i bought to be set as a profile picture and i do it so it's a four step process

and every step everything that you do in pancake finance it will ask you for confirming

it these fees that you are seeing is a one-time fees for setting up a profile

after that it is only every transaction that you do that you need to do the fees but again as compared to

ethereum the total fees in this entire process was like less than one transaction ethereum

so then you ah you be part of a team you can select whichever team it doesn't really matter

and then you put any name here um this name if people know about it they can actually look at your transactions

because it is on the blockchain binance smart chain you can actually look it up so

if they knew your username they can view your wallet balance so i'm going to use a name just for this

purpose but unfortunately if you use your social media names then other people can also

view your wallet balance so be careful about that so then again finally when you when you

when you are about to create your wallet it will again ask you to sign it now you have completed your profile so

this profile creation process like i said is optional and you can skip it if you don't want those additional benefits

so finally ah you're signing an nft contract to say that um i i want to create my profile that

costs point five cake so totally in the first step it cost one cake and now it is costing 0.5 k

so this is another 15 so first we spend about let's say twenty five dollars and now we

are spending fifteen dollars so in total about uh forty dollars and in fees we would

have spent maybe about one dollar in total so forty one dollars we spent for creating the profile completely

so now this is the step for creating a profile in pancake swap and what they're trying to do is that

they're trying to encourage you to be part of the ecosystem so there's 1.5 gig that you

you are spending they are giving you additional benefits and then they are trying to

get you to be part of the ecosystem that's how they are they're attracting it is like you know

getting a membership with a spigy or something like that right so becoming a premium member with ola or

something like that so that you know you get like benefits small benefits on future transactions so

it's membership that they're trying to get so now um we're going to go on um farm so

that you see that there is a farm that is about 500 percent liquidity right now so first thing i'm going to do is i'm

going to buy one of those forms so i'm going to buy one of those cryptos so itam was the coin that i saw was was

having a higher liquidity percentage so i don't have any item i'm going to swap it i'm going to

go to the trade exchange swap i have bnb so i have 40 dollars worth of bnb

so what i'm going to do is i'm going to buy roughly about you know 15 16 worth of item i need to

keep some bnb always for my uh liquidity fees so i'm going to spend like 15 dollars worth of uh

bnb i'm going to swap it to itam so it says that 0.03 bmp gives me 162 item

as you can see liquidity product fees is like less than ten cents or five cents practically so

click on swap we saw it in unisport as well how we can swap it from one currency to another currency

this is the decentralized finance swap and now uh i click on confirm every time i do a transaction i have to click on

confirm in my in my meta mask so now in in like five or six seconds at the swap is complete

now i have both b and b and i time and now i am going to become a liquidity provider so the same

liquidity the same swap i did i am now going to become a liquidity provider i am going to earn fees from

that so i click on add liquidity and i have to select a pair like i said in my

previous episode right i have to select a pair now so i select item which is my

other crypto that i just bought and then i select maximum and it tells me the equivalent amount of my

bnb remember the dollar amount equivalent of both like apples and oranges that we did

right so we have to have the same dollar amount so it automatically calculates the same dollar

amount and it says approve the uh item spend first of all so first i need to click on approve the

item spent so to spend a cryptocurrency for the first time

in pancake swap uh if it's a new crypto that we have not spent in my case up there is an approval process first that

this is a new crypto that you have not used in pancake approve it first so item is a crypto

that we not spent in uh pancakes for so we are approving it then there is a supply button

which means that ok we are ready to supply this liquidity to the liquidity pool

we saw what liquidity provider is what liquidity pools are in episode 24. so now i am click on

confirming supply so when i confirm at this point i get liquidity provider token which is a

lp token is a representation of the fact that i have become a liquidity provider so which what it tells me is that i have

provided liquidity and this is evidence of the fact that i have become a liquidity provider

and this is the quantity that i have provided liquidity for in bnb and i time at that point and it

could it will start to vary every minute so again you have to confirm in your

metamask so every transaction like i said there will be a confirmation button so

even though the bridge is connected pancake swap cannot take funds from your metamask without you authorizing

every single transaction so now that's done and lp tokens are in your wallet now if

you go to your metamask you can see these lp tokens in your wallet as well and this is like i said is a

representation of the fact that you've become a liquidity provider and notice that you have a ratio of how

much bnb and how much item you have submitted and this will vary every minute if the liquidity if the if it's a

fast moving transaction uh item will go up b and b will come down or b and b will go up any time will

come down like the oranges and apples explanation that i did at this point if you go to metamask

and you see you can see that lp token representation in your so you click on the three dots on expand

view so that you can make it bigger in meta mask not just for this but for any purpose and here you can

if you scroll down you can see the lp token being represented as dash lp which means that that is the

liquidity provider token that you have got now you will see it only at this stage when we use this

liquidity provider token to submit it in a form after that that is in a form and you won't see it

some people had said that no no i'm not seeing it that's because you've done it in the next step in this

step between providing liquidity and and putting your lp tokens in the form if you see it you'll be able to see it

in the metamask now i'm going to go to the form so farm is where after i have deposited

after i become a liquidity provider my my mining rewards like i said right how mining rewards the second step of

rewards so here i go see that's it's 579 percent it will reduce over time

and you will notice it when you start using it and then explain it much better in the

next episode so i click on enable first of all i am enabling access to this form again for every enable for every

transaction every confirmation it cost about you know 15 16 cents this is something to keep in mind but

it's a one-time fees that you pay and then you click on stake lp now it will tell me how much balance i

have these are the two liquidity provider tokens that i have and i'm going to stake it so when i'm

staking it what it means is that in this form the liquidity provider token that i had got

by providing liquidity i am taking it and i am staking it into this form and this is giving me a mining reward

what it is doing is that the reward option that we spoke about the second level of reward so you get a liquidity

provider fees for every transaction in the liquidity pool apart from that you also get the second

level of reward which is this mining reward and you will see slowly and steadily depending upon

how much money you've invested slowly uh you will start to see that the money like for example if you invest a

thousand dollars you will see it to raise much faster if you put only hundred

dollars you slowly see that increasing the third level of reward the that's what makes pancakes pop even more

interesting is called the syrup so in syrup pool now that we have cake right so cake is what is being generated

out of that form so all the cake that we earn we can come to a syrup pool you have to enable a

syrup pool or approve cake spend for the first time for every pool and then you can you can

select any pool and you notice that most of it is above 100 i am selecting item pool here

as an example and i confirm what i am doing is first i use my lp tokens and i'm getting

cake free cake now i'm using that free cake so i bought that extra cake to show this option

i'm taking the cake and i'm putting it into the syrup pool and i'm getting free item tokens

so this is my third level of reward so that's the three level reward structure that they have

now you can see that immediately after putting my my stake my itam pool is starting to increase

it is starting to show that i am getting free item tokens now we can put it in any of these tokens they are all binance

smart chain tokens as much and crypto so you can stay cake and get more cake as well that also you

can do so this is like you can see that the the interest percentage is is very

very different and goes down over time when a new pool is create new form is created

it is higher and then it goes down over time so you can you can transfer from metamask to bnb

very very quickly same process like how you did it so in bnb you go and click on deposit

and they will give you a b p 20 address which is the binance margin address so you can only use b

p 20 for transferring so you copy the cake whatever free cake that you earn right

so you can take that k chord you can take any crypto for that matter and if you find it in bnb you can

transfer it and you can transfer it to bnb and you can sell it like a normal process

so this is a basic demo um what i wanted to establish was that how much money you can earn so i'm going

to give you a very very simple sample this is a tool that i use to monitor how much my

my my profits are getting so for example i deposited on on friday into this pool last friday

and uh on ninth of april uh and in two days uh roughly about let's say thousand

dollars that i had deposited uh thousand dollars equal which is five hundred dollars of bnb and five hundred

dollars of rpa which is another token that i deposited i time also i deposited 738 on friday

same day i transfer i deposit and this is a good tool that i use to monitor i'll explain about this tool

also in my next episode in detail because this tool also requires a bit of detailed explanation

but um you can see that the amount of money that it has generated or the cake that it is generated and the

percentage that it has generate or the dollar amount is generated for illustration purposes if we just

quickly see right how much money that i have got in two days for example thousand dollars into the

first pool and 738 into the first pool second pool 28 dollars roughly that i've got from

the tool what it's showing me and the cake that it has generated the yearly interest is that much and the

on the calculated yearly api is that much percentage so again this is only an illustration for

the earning potential it will reduce over time and that way that's where the need for

an effective yield hunting is i will explain this yield hunting process and tips and tricks in my next

video but again one of the uh summary is that however high this bnb value goes like

unlike ethereum they are trying to keep the fees um lower in the last two three weeks when

i've been doing this and in fact last two days they've reduced the the gwui fees the

gas fees that it has called uh even lower that you know they're trying to always keep regardless how

much our bnb goes up they're trying to keep the fees much much lower and

in the first two three days it was uh probably around 20 cents and then it actually came down to like less than

20 12 cents 11 cents and every transaction was costing like 10 cents 11 cents compared to

you know 30 40 100 in ethereum so that's the huge difference impermanent loss can

still be higher if you're not careful and if you keep moving like if you only put liquidity provided amount as 200

it will take you two three days to recover your fees don't keep moving your staking from syrup like you

keep your cake in a syrup pool for two hours and then you move it you're not actually

getting benefit out of it by having a small amount if you have a very large amount okay

that's fine you know you if you have like thousand dollars two thousand dollars or ten thousand

dollars it makes sense but if you have like hundred dollars two hundred dollars you need to keep it in a firm or

a syrup pool for at least three four days so that it covers your fees and gives you enough benefits

over and above your impermanent loss so i'll explain some of these calculations in a little more detail but

that's the process if people want to start doing that process and start getting

used to that system so the standard earning option um you know we can actually be

a lot more profitable if you do it really really carefully understanding impermanent cost

but you know hoarding crypto like keeping a crypto buying it and keeping it and waiting for

like three months four months five months that's the best way to make profit what

i'm showing here is the fact that you can do that also use that crypto to passively earn

from it you know instead of keeping it idle in your uh wizard x account for example

x you get nothing if you put it in bitro for example i showed you how you can get like seven percent eight percent on

interest on your crypto here i'm i'm showing you additional methods where it's uh

it's there is there is a little bit more of a learning curve than just putting it in a stake

there's a little bit more of a learning curve but if you follow up on the video if you look at the video previous video

on this one you will understand the advantages better and i'll also post a follow-up video in

episode 26 with some tips and tricks and benefits of being early and you know how to use twitter account

efficiently so make sure you follow me on twitter as well and hopefully this was useful to you thank you bye