Tutorial: Pooling USDT on Binance Smart Chain for CAKE and BUNNY Rewards

LeoFinance
14 days ago
5 Min Read
976 Words

Step 1: Set up MetaMask for Binance Smart Chain (BSC)

This tutorial is going to assume you are using MetaMask and already have it set up for Ethereum. There are other wallets you can use, but MetaMask is probably the most popular one.

BSC is a second layer on top of Ethereum that uses BNB to pay gas fees instead of ETH. BSC addresses are the same as Ethereum addresses. As a result, since MetaMask is an Ethereum wallet that can be set up to access different networks, it's a great way to interact with BSC.

binance.org has a great setup guide at: https://docs.binance.org/smart-chain/wallet/metamask.html

If you already have MetaMask installed, scroll down to the section titled, "Connect Your MetaMask With Binance Smart Chain"

This guide will add the BSC network to the dropdown list in your MetaMask wallet, so your networks will look like this:

Personally, I created a second MetaMask address for all my BSC transactions. It's not required, but I just find it easier to keep things separate this way.

Once your wallet is set up, we're ready to do some transactions.

Step 2: Get USDT on binance.com exchange

Like I said before, BSC is a second layer on Ethereum and uses tokens called BEP20 tokens. All your usual players have BEP20-wrapped equivalents: BTC, ETH, BNB, USDT, etc. This guide is focusing on USDT, but the same process can be used for other tokens that have pools you find attractive.

The easiest way to wrap tokens into their BEP20 versions is to go through binance.com

So this step is fairly simple:

Send funds to your binance.com spot wallet.

If you need to trade funds to obtain USDT, do that.

Step 3: Get BNB on binance.com exchange

BSC uses BNB to pay for gas fees. The good news is that gas fees are dramatically lower than layer-1 Ethereum. At the time of writing, all the steps in this tutorial will cost about 1 USD in BNB-gas total.

If you don't already have BNB on your binance.com spot wallet, convert some of your USDT to BNB inside the wallet.

Click that convert button and convert some USDT to BNB. At today's gas prices, 0.2 BNB will last you a long time (about 50 USDT).

Step 4: Withdraw BNB from binance.com to BSC

From your spot wallet, click withdraw

Select Crypto, then choose BNB as the coin, copy your MetaMask BSC address as the Recipient's BNB address, select Binance Smart Chain (BSC) BEP20 (BSC) as the Transfer network.

If this is the first time withdrawing to BSC, binance will give you a little quiz to make sure you know what you are doing before it allows you to withdraw.

Important: General rule for life when doing completely new things is to test first. Send a very small amount of funds as your first transaction. Make sure everything goes through and you have no issues before withdrawing your total balances.

Step 5: Withdraw USDT from binance.com to BSC

Repeat Step 4, but withdraw your USDT instead of your BNB. It all goes to the same address.

Congratulations, you now have assets on BSC.

Step 6: Zap Half of USDT to BUSD

Go to https://pancakebunny.finance/farm/USDT-BUSD%20FLIP%20CAKE%20Maximizer

pancakebunny is the platform where we will be getting our CAKE and BUNNY rewards. The USDT-BUSD FLIP CAKE Maximizer pool is the one I'm using in this guide because I have a strong preference for stable-stable pairs that prevent impermanent loss. You might make more in other pools, but the impermanent loss potential creates far greater risk to your principal.

"Zap" is the term pancakebunny uses to trade one asset for another.

Click the "Direct Zap" button.

Change the top coin to USDT.

Change the bottom coin to BUSD.

Zap half of your USDT to BUSD. You'll need both for Step 7.

Like most Uniswap clones, you'll need to "Approve" the contract interaction before you actually execute the trade. So click "Approve USDT", accept the transaction in MetaMask, and then execute the trade.

After the you have traded half your USDT for BUSD, click the "<- Back" button to return to the pool page.

Step 7: Add liquidity to USDT-BUSD pool on pancake.finance

Now that you have the assets needed to enter the pool, click the "ADD USDT-BUSD FLIP LIQUIDITY" button. This will take you to https://exchange.pancakeswap.finance/#/add/0x55d398326f99059fF775485246999027B3197955/0xe9e7CEA3DedcA5984780Bafc599bD69ADd087D56

This should open in a new tab.

There are often some slight variances between 1 USD, 1 USDT, and 1 BUSD. So look at your balances for USDT and BUSD. Enter the smaller of the two numbers for both assets. Approve the contract and add liquidity.

You now have USDT-BUSD LP tokens.

Note: In this image, I have already added liquidity. I had slightly less BUSD than USDT so I ended up with 0.48 USDT unused left in my wallet.

Step 8: Deposit USDT-BUSD LP tokens on pancakebunny.finance

Go back to the pancakebunny tab.

In the deposit section, click the Max button, Approve and Deposit.

You have now entered the USDT-BUSD FLIP CAKE Maximizer pool. Congratulations!

Step 9: Check back every so often to claim rewards

Now you are earning two tokens as rewards: CAKE and BUNNY. Check back every so often to claim your rewards.

Click the CLAIM button, confirm in MetaMask, and now you will have some CAKE and some BUNNY in your BSC wallet. You can then Zap them for other tokens, keep them for speculation, or whatever else you want to do.

Bonus step 10: Stake rewards

Once you have your CAKE and BUNNY, you can stake those rewards in some of the other pancakebunny pools to compound your rewards. How much to do is up to you. Personally, I'm selling 80% of my rewards and compounding 20%.

Posted Using LeoFinance Beta