Passive Income on the Binance Smart Chain (featuring Pancakeswap)
Liquidity mining, yield farming and staking…..
Ethereum may be the hottest club in crypto town, and new projects that are doing brand new things with tokenomic wizardry can see their tokens shoot off in price like wine-corks on Christmas Day.
However, not everyone is a-wash like the whales in magic crypto, or are prepared to pay the high fees just to transact on Ethereum. And, this is providing an ample opportunity for younger nightclub networks like the Binance Smart Chain to start attracting the masses.
There are already a number of platforms on the BSC blockchain which allow users to earn decent passive income by supplying liquidity (crypto) in various quantities of tokens, if you’re willing to accept the risks.
What is Liquidity Mining?
Now, you may have heard about Ethereum and the latest, groundbreaking exchanges such as Uniswap, which provide a decentralized mechanism for any user to bring liquidity to a token, since anyone can earn rewards in the form of fees, or the platform token, like the UNI governance token.
However, slow transaction times and high fees as we transition to Ethereum2 have led to a lot of frustration and a yearning for new, faster platforms.
Enter… Binance Smart Chain
The BSC blockchain (which uses the familiar BNB token for fees, as on its centralised exchange) has arrived at just the right time to catch on to the ‘de-fi’ trend and is witnessing increased usage and tokens being wrapped or bridged over onto the chain.
The results are fast, cheap and exciting, and new finance dapps are appearing everywhere, bringing traditional financial tools into this realm of automated protocols. They also vary in terms of what financial offerings they are looking to serve up.
If you want to start supplying liquidity for say, Chainlink (LINK) then you’ll need equal amounts of BNB and LINK (wrapped onto BSC via Binance etc.) to claim the relevant LP tokens, which are in turn…