The Beginner’s Guide to Farming and Staking on Biswap
Biswap is the first DEX on the BSC network with a three-type referral system. as well as, the lowest exchange fee.
Biswap was officially launched on May 24, 2021. It has been gaining momentum since then and is becoming one of the most popular yield farms in the DeFi space. This protocol works on the model of Automated Market Making ( AMM). Using Biswap, you can swap BEP-20 tokens and add them to liquidity pools to earn rewards.
From farming to staking, games, competitions, and lotteries, there is plenty of action happening on Biswap. Let’s check them out one by one.
How to Use Biswap
Unlike other cryptocurrency exchange platforms, you don’t need to register on Biswap. You can simply start by connecting your wallet. Make sure you have some BNB tokens in your wallet for transactions on the BSC blockchain.
Let’s get started. Go to the webpage: https://biswap.org/
Connect Your Wallet: On the top right corner of the main webpage, you will notice the “Connect Wallet” button. Once you click on the button, a drop-down menu will appear. You can choose from the options available like MetaMask, TrustWallet, SafePal Wallet, etc.
If you don’t have a wallet, just follow our guide to create a new wallet.
Read more: How to download and install MetaMask
For demo purposes, I am connecting my MetaMask Wallet.
Once you enter your password into your wallet. Your wallet will be connected and your wallet address will be displayed on the top right corner.
Now that your wallet is connected, you are ready for action on Biswap.
Biswap enables you to make use of your crypto tokens in 3 fundamental ways. You can trade, earn and win. Trade is conducted by swapping tokens. You earn via staking pools and yield farms and win money from competitions and lotteries.
1. Token Swapping
One of the simplest and easiest ways to earn a variety of other tokens is via token swapping. Trade your BEP-20 tokens for another token. This is done via the automated liquid pools instantly.
As mentioned earlier as well, the first few swaps for a limited time frame are free. Post that a very meager amount, the lowest in the DeFi space is to be paid for the swaps. A trading fee of 0.1 percent will be charged. The breakdown of these fees is as mentioned below.
0.05% is used for BSW token burning and 0.05% is returned to the liquidity providers as a reward (you can see the tab for the fee return, right on the top).
2. Liquidity Pools
One of the main features of the Biswap platform is the Liquidity pool. So as explained earlier, you are given Liquidity provider tokens aka LP tokens, when you add liquidity to the pool. In return, you earn trading fees.
You can stake these LP tokens and earn BSW tokens from yield farms. Before explaining yield farming in detail, let’s discuss a bit more about liquidity pools.
You can add liquidity to existing pools on the Biswap platform or you can create your own pool.
Let us understand this with a small example. You decided to create and add liquidity to $BNB/$BUSD (a pool that does not exist currently).
As you can see in the above snapshot, you will get a message that you are the first liquidity provider. And you will be the one to set the price for the pool. Cool isn’t it?
Now let us choose another pair. If you add liquidity to BNB/BSW. You will receive BNB-BSW LP tokens. The LP tokens you receive represent your share in this pool. You can withdraw and redeem your fund anytime you want.
Please keep in mind, you need a sufficient amount of each token or else the transaction won’t take place.
You will earn some fees when a trade occurs that taps into your funded liquidity pool (0.05% as the reward).
There are always some amount of implicit risks attached to providing liquidity. One such risk is Impermanent loss. Impermanent loss can occur when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them.
3. Yield Farming
Ready to stake your LP tokens to enable the farms and earn BSW rewards?
Lets us understand the entire process step by step:
- Head to the Farms option from the Left panel
- Now you need to click on the Live menu to view the current farms on the platform.
- You will be able to view the list of LP tokens that are currently supported for farming as shown below.
- I am going ahead with the second option that is the Farming pair of BNB-BSW. Currently, it is offering an APY of 407.75%
- Once you click on the BNB-BSW, you will see the below tab
- Now click on the Get LP button (Don’t be confused with the APY, it keeps changing every minute)
- This will direct you to the liquidity page. Provide the liquidity for the BNB-BSW token in the farming pair.
- You now need to enter the equivalent amount of each token.
- Approve the transaction, and let us head to the next step
- Enter the equivalent amount of each token from the farming pair and click the Approve WBNB button. The thing to note is, when you enter the BSW amount, the WBNB amount will be filled automatically.
11. Once the transaction is approved. now click on the supply button. This will display the output estimated.
12. Once you check all the details, confirm supply and viola LP tokens are added.
13. Now is the time to stake the LP tokens in the BNB-BSB farming pair. This will help you to earn BSW tokens for free. Good job! You have now activated your farm on Biswap.
14. You can also Harvest your BSW token by clicking on the harvest button, which by now will be shown in green color.
15. Apart from this, you can further stake, unstake, or harvest - the process is quite simple
Now we have completed the Yield Farming transaction. You invested your LP tokens and have received BSW tokens as a reward!
4. Staking In Biswap
Let us now head over to the Biswap Launchpools. With staking pools, you can use your crypto tokens to earn even more tokens. By locking your crypto assets into staking pools, you can earn rewards.
As you can see in the above screenshot, there are two ways you can stake - via BSW Launchpools or via Token Launchpools. This means you can:
- stake your BSW tokens for more BSW tokens and auto-compound them.
- stake your BSW tokens and earn other tokens as a reward
- earn BSW tokens by staking any other tokens on the platform.
If you decide to stake via the BSW launchpools, this is done in 2 ways.
The first being Auto-Compounding. I am sure the name says it all. Here the earned tokens are compounded every 5 minutes. The earnings are shown as a part of your annual percentage yield. And you got it right, it happens automatically. This function is available only for the BSW Launchpools
The other way is to do this manually. So as a user you need to Harvest and compound the earned tokens as and when you think it is the correct time to do so.
As you can see in the above screenshot, you will be charged an unstaking fee, in case you withdraw within 72 hours. Otherwise in Auto-compounding, there is no commission fee. But yes there is a performance fee of 1.99 percent. This is automatically deducted from your earnings.
5. Token Launchpools
We have understood in the above section, how we stake in BSW launchpools. Let us now head to the section where you can stake other tokens. This helps you in earning BSW as a reward.
As you can see in the above snapshot, there is a maximum limit specified. The limit is shown according to the relevant prices of the token. A very interesting thing to note here is, don’t get confused with the maximum limit specified. This limit is restricted to only your initial investment.
For example, I have staked 500 dollars( the maximum limit) of a token in the Stake Token Launchpool. In the staking period, there is a sudden surge and the token price is now 800 dollars. You can still withdraw your tokens at the current price, despite the maximum limit of the stake being set to 500 dollars.
So in the end, your final earnings will be 800 dollars. And this does not include the BSW passive earnings that you would have earned on the amount.
Cool, isn’t it? The process of staking is the same as that of BSW launchpools.
6. Other Features:
There are many more ways to earn on Biswap, such as lotteries and games. You can buy and stake NFTs as well. To learn about these and more, read our article on the topic.
Read more: An Introduction to Biswap and its Unique Earning Programs
Before You Go...
Biswap is an innovative DeFi protocol built on the Binance Smart Chain. From having the lowest trading fees on its platform to offering a unique 3-way referral program, Biswap is bringing out a lot of exciting features for its users.
Biswap farms offer very high APYs compared to other DeFi farms. This platform also offers you exciting opportunities for NFT staking.
As a winner of MVB II, BSC’s Most Valuable Builders, Binance Labs has announced their investments in Biswap! So go ahead and do your research and be among the early investors on this exciting platform.