This article outlines the ease of providing liquidity to PancakeSwap using the TrustWallet wallet app from your smartphone.
What is Liquidity?
Liquidity is a measure of ease in which an asset can be converted to other assets without affecting the price. This determines how quickly and easily assets can be sold. Adequate liquidity indicates that an asset can be easily bought and sold without impacting the price. On the other end, a lack of liquidity implies that users who want to purchase large amounts of the assets may face difficulties, typically resulting in high slippage. Typically in traditional markets, large entities will provide liquidity through making the market. In the context of Automated Market Makers (AMM) any user can leverage this technology and become a market maker in the BSC blockchain.
For those who wish to learn more about liquidity mining or yield farming, check out the following articles:
Cryptonomics: Yield Farming Explained
Cryptonomics: Automated Market Makers
Liquidity Providing on PancakeSwap
This article outlines the ease of providing liquidity to PancakeSwap using the TrustWallet wallet app from your smartphone.
Firstly open your trust wallet app
Go to your built-in Dapp browser, then navigate to this website pancakeswap.finance
When you are on the site, the top toolbar will display an Ethereum logo; click on it and switch to the Binance Smart Chain (BSC)
After that, you’ll click on the menu button on the top left of the site
Then click on trade and select liquidity
It will take you to the page to add liquidity select on “Add Liquidity”
Select the different tokens available in your wallet and provide liquidity
After selecting your token choice, you must approve the smart contract to interact with your tokens, to do so, select the approve button.
Once the button is selected, navigate back to your TrustWallet app and sign the transaction
Upon approval of the transaction, select the supply button, which will prompt another signature in TrustWallet; once approved you are now a LP earning transaction fees.
Yield Farming
PancakeSwap, along with nearly every other De-Fi protocol, offers users liquidity incentives to bootstrap their growth further. This means that on top of earning transaction fees, users can earn the native governance token CAKE. To do so, users can deposit LP tokens granted to them for providing liquidity into yield optimizers or the basic farm function on PCS. These rewards allow users to earn APY’s upwards of 100%, which are compounded further through smart contracts in platforms like Beefy.Finance, JetFuel Finance, and AutoFarm.
For users who wish to learn more about PancakeSwap, TrustWallet and Yield Optimizers, check out the following resources:
PancakeSwap DEFI AMM and Yield Farming Project: A Review
Trust Wallet: The Official Binance Crypto Wallet
The BSC Fast Lane With MadDog & Amal: What Are Yield Optimizers?
Source : bsc.news
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