How to earn passive income on Pancake Swap

how to earn crypto passive income with pancake swap i'm going to show you how to earn as a liquidity provider holder as a farmer and as a pool participant so there are three different ways to earn passive income with pancake swap now this guide will pretty much be the same if you are going to be using sushi swap ave or any other type of protocol they are all very similar so if you are new to decentralized finance or defy this should help you out and in this video i'm going to be using trust wallet because pancake swap is on binance smart chain and anything on binance smart chain is going to support trust wallet or wallet connect so that is the wallet of choice when on finance smart chain now this video is going to be a lot if you don't know how to use pancake swap i made another video explaining that from a beginner side so you can get your basic understanding of how everything works and we're going to jump into a little more advanced stuff in this video now if you can help me out by hitting that like button i would appreciate it and now we can get started how to add liquidity in pancake swap so let's add some liquidity i'm going to the menu here i'm going to exchange going to liquidity and i can add any liquidity for any tokens i have even if that token isn't available on pancake swap if you are adding liquidity to a token that isn't on pancake swap you would be the first liquidity provider this is common if you create a token and want people to be able to trade it uh we're not going to get into that that's not what this video is about but the process is exactly the same so i'm going to select add liquidity i'm going to select my currency we're going to go with bnb and we're going to go with busd and i'm going to add my entire balance of busd if i did it the other way with bnb i don't have a sufficient busd balance so that won't work but i want to put b and b and b usd as a liquidity provider you have to add the equal amounts into the liquidity pool so if i'm going to add 56 b usd i'm going to have to add 56 dollars worth of b b as the equivalent so the pool is always going to be a 50 50 balance now the benefit of being a liquidity provider you get profit you get a share of the pool and for every time someone trades point one seven percent of that trade from that point two five percent fee goes to the liquidity providers let's say the pool makes a thousand dollars and you own 0.1 percent you're coming out with a 10 so it really depends on how much that pool size you own so i'm going to own 0.01 percent of the pool less than that significantly less than that and how many people are trading b and b to b usd on pancake swap so that can vary and later i'm going to show you what type of interest we can expect but for now we're just going to add liquidity and now that i have my busd set up and the amount of bnb that's equivalent to it we're going to select supply and it shows us that we're going to get 2.37 pool tokens and i'm okay with that kind of shows the exchange rate and what we're getting into here and the supply and the share of the pool significantly less than one percent which makes sense there is a lot of money locked on pancake swap but we can still benefit as much as someone uh with a lot of money basically if they get uh 0.17 of all the trades we're also getting 0.17 percent but that is in relation to the amount of money we are putting up on pancake swap so i'm okay with that confirm supply then we go back to our phone again we're gonna get a notification smart contract call the network fee to add liquidity is going to be 54 cents i'm okay with that hit approve and now we're waiting in real time so you can understand how long this takes uh transaction submitted close transaction receipt we're good so we should have some liquidity provider tokens now for the bnb busd pool see that just updated and we're ready to roll so opening up this menu again uh now we can move over to farms so let's look at the farm we're going to look at the busd bnb pool and you get 30 apr for putting up your liquidity provider tokens and since we just added liquidity we have liquidity provider tokens to participate in this pool and we can be earning 30 apr on those tokens we just got so indirectly we'll be entering 30 apr for holding bnb and busd and participating in the pool that is a lot but is there a downside yes impermanent loss and impermanent loss is pretty much uh thinking are you going to make more holding b and b or are you going to make more from the trading fees so if i think uh bnb is going to go up more than a hundred percent in the next year i might want to be holding the bnb tokens if uh i think that the price is gonna go sideways i i would make more as a liquidity provider holder so let's participate so all you have to do is select the drop down details stake lp we have 2.37 liquidity provider tokens for the busd b and b pair select max annual roi on this so we put 56 dollars in well actually 112 dollars in and we're gonna get 23 that is the apr and not apy so apr is the rate we'll get over the course of a year apy is the accumulated earning rate if we keep reinvesting anything we're earning so apy is always going to be higher than apr if when all things are equivalent and to earn more with apr we're going to have to claim the rewards and then reinvest them so back to the phone we're gonna have to approve this transaction i hit approve now we're waiting for this to confirm in real time so you understand how long this takes i mean i can tell you a story if this keeps going long of how dan got into cr oh no that story is for next time the funds have been staked and that's it so it's gonna show us uh harvest this button is now active and it's going to show the rewards we're earning from participating in this pool now let's take a look at pools we're going to go lightly through these other ones though prediction that's not working lottery that is gambling yeah collectibles that's nfts team battle i forgot what this is uh not available they stopped doing that in april so that's no longer a thing but what i really come here is for the exchange the farm and the pools so syrup cereal pools are a way for you to stake cake tokens and earn other tokens high apr low risk pretty true and let's take a quick look at what you can do there's auto cake in manual cake if you just want to hold the cake token you can get high interest and that interest rate is very high because they're printing out cake tokens for you to participate right now there is no max supply on the cake token and they are trying to burn the token through the fees but yeah the the coin supply is gonna keep going up and that makes it an inflationary coin something you don't want to hold too much of just in case uh the price drops or it's just difficult for the price to keep going up because of the coins being printed out so that's one of my personal concerns but i do have some cake just because high apr yeah high interest so let's look at the coins i'm staking i'm you know not financial advice i'm staking sps and i'm staking mask i'm in sps just because ygg the yield guild uh it's one of the games they're playing and they have a huge audience of axi infinity players and i want to see what they're investing in what they're playing and i want to get some exposure to that so that's why i have sps non-financial advice do your research if you want to participate and the cool thing about sps you can also earn a high interest rate off this so with any sps tokens earned you can harvest them and then you can go to splitterlands and you can stake your coins there and the interest rate for sps tokens at the moment is around 200 percent super high uh but that's absolutely going to go down over time because that's unsustainable and i'm also staking mask so you can see here the interest rate i'm getting i'm getting apr for mask and i'm getting apr for sps now i can harvest these whenever i want and as soon as i harvest these mask tokens they will appear in my trust wallet so for example let's do it i'm gonna harvest my mask tokens gonna hit confirm a prompt should appear in my trust wallet account we're gonna wait on that in real time and dan is just talking filling time waiting for this notification to happen on my phone here we go smart contract call loading and it's gonna cost me 45 cents to claim 10 and 64 cents of mask tokens that is a little high but i'm gonna i'm gonna claim it anyway uh you know you have to outweigh is the gas fee worth claiming it now or do you just claim more and bigger amounts it's like you're driving a car do you want to get a gas at half a tank a quarter tank or on an empty tank are you gonna be saving more time and money and uh yeah you you make that decision yourself so i have harvested those tokens or i think i did so i'm gonna hit confirm again yeah yeah they were harvested okay so sometimes if it doesn't update right away i get concerned and you should you should be concerned like oh did this go through and uh because sometimes it's unreliable but hey all this technology is still fairly new all right so looking into my bsc scan address and looking into my wallet i do have those mass tokens they did appear two minutes ago so you can see that happened so when you claim tokens from a pool they will appear in your trust wallet account and now i have masked on finance smart chain how to earn passive income with pancake swap as a liquidity provider so a liquidity provider is someone who adds liquidity to the market and this market is exclusively to pancake swap for this video and that's when you add a balance of two different tokens that could be bnb to usdt or bnb to busd any combination of coins that are supported on bep20 that is the binance smart chain network it is going to sound confusing so we are going to look at a very simple example if i want to be a liquidity provider for the busd and usdt trading pair i'm going to have to add an equivalent amount so it has to be a 50 50 ratio and that's how the liquidity pools always maintain their balance everything always has to be at 50 50 and there will be some issues there as the coin price goes up or down we'll get into that that is called impermanent loss so when you add liquidity as a liquidity provider you need to add fifty percent of one coin and fifty percent of another and this is 50 of its us dollar value so i would add in this scenario 50 usdt and 50busd i now have a one-to-one balance and i can become a liquidity provider and if you become a liquidity provider you can see here by adding liquidity you'll earn 0.17 of all trades on this pair proportional to your share of the pool fees are added to the pool accrue in real time and can be claimed by withdrawing your liquidity so the revenue you generate through these trades are automatically being added to your pool token so you won't necessarily see any actual rewards and you might not be able to figure out how much you actually earned until you withdraw those liquidity provider tokens for the original tokens you submitted impermanent loss this is something you have to consider if you want to be a liquidity provider because you could actually lose money by being a liquidity provider in the event that your token price goes up significantly in value and this is just a chart where it's kind of looking at the market over a year it's not exactly something you can assume because there's a lot of different factors like how much are you really going to make as a liquidity provider no one can tell because that's based on the amount of people are trading if the market is bullish a lot of people are going to be trading now if the market is bullish that's kind of another issue because uh as the liquidity pool has to keep that 50 50 balance it might be selling off some of your assets to maintain that 50 balance so for example uh we have 500 worth of bnb and 500 worth of busd if b and b goes up in value it's gonna have to sell off some of that bnb to buy busd to maintain that 50 50 balance so to put it simply you're better off holding a token in a bull market than being a liquidity provider now that's in in the event that the coin goes up at least a hundred percent in value but uh if we're in a sideways market and people are still actively trading you're gonna do better as a liquidity provider holder so by adding liquidity you'll make more now it's best to kind of split it up unless you're very good at analyzing and predicting the market i'm not so i kind of split things up but for the most part i am a holder how to yield farm so when you're joining any of these farms you will be adding the liquidity pair of those tokens so for example cake to bnb busd to bnb and then you'll be earning an interest rate for holding those liquidity provider tokens on the pancake swap platform now as you can see some of them have very very high aprs and that's because you will be taking a lot of risk generally speaking the higher the apr the higher the risk so if you want to jump into any of these that have a very high apr you should understand what you're investing in i personally will stick to things that i've researched that i understand and if i like their business model if i see that happening long term so for example access to bnb both by themselves great tokens and you can earn a pretty high interest rate just for holding that liquidity onto pancake swap so if you want to participate in any of these you're just going to have to put up a 50 50 ratio of the token so cake usdt hundred dollars a cake hundred dollars a usdt and earlier in the video i provided the busd b and b pair i took some out just to test and i'm going to show you how to withdraw your liquidity from pancake swap it's pretty easy just select this minus sign you can take out as much as you like i am going to take out the max amount i'm going to hit confirm and then i will get a prompt on my phone to confirm the transaction and approve happened in real time and we're waiting for it to update on the website once this goes through we are going to go back to the exchange well we're going to go back to trade and select liquidity and now we should see all our tokens there 2.37 liquidity provider tokens of bnb to busd now we can remove liquidity and just get that bnb and b usd back and let's do that so we're going to select remove and we can take out any amount we like i actually really like this slider uh we are going to take out a hundred percent of the liquidity that we provided and it shows us what we're leaving with we're leaving with 0.12 bnb and 59 busd and it doesn't really show us the rewards we earned but that has all been rolled into the amount we're getting back so as a liquidity provider we earn 0.17 percent of every trade that happened on the exchange in a relation to the amount of the the uh pool we own and we owned a very very small share of the pool significantly less than one percent uh i'm going to hit enable and then i'm going to get a prompt on my phone and all i have to do is hit ok and now we can remove liquidity so you have to hit enable confirm it on your phone hit remove and we need to confirm what we will be receiving yes and uh hit confirm and then we get another prompt on our phone and approve [Music] so my transaction has been submitted and in my trust wallet i will receive 0.12 bnb and 59b usd if you want to remove liquidity from pancake swap it's going to take you less than a minute with what you've learned in this video that applies to most d5 platforms on how to provide liquidity how to join a pool how to farm and you should be set to get out there into the deep five world now with that i hope you got your full value for today [Music]

Channel: Full Value Dan

Views: 202,597

Keywords: pancakeswap explained, syrup pools, staking cake, how to use pancakeswap, yield farming tutorial, passive income, pancakeswap farming, pancake swap, pancakeswap staking, pancakeswap tutorial, pancakeswap trust wallet, cake crypto, pancakeswap price prediction, pancakeswap staking explained, pancakeswap tutorial binance, pancakeswap tutorial trust wallet, pancakeswap staking cake, pancakeswap staking vs farming, pancakeswap farming risk, pancakeswap farming explained

Id: AYQSGwNnXCc

Length: 18min 34sec (1114 seconds)

Published: Wed Aug 25 2021