If you are not participating in DeFi yet, you are missing out on some great opportunities for cryptocurrency investors. The intention of my post is to encourage those who have never used DeFi to start with it. The Pancakeswap syrup pools are a good place to collect first DeFi experiences.
Why Starting With Syrup Pools?
The Pancakeswap syrup pools are a great way to start with DeFi because it's simpler than farming with regular DeFi Yield Farms. The reason for it is that, unlike the Farms, you only need to stake one single asset to start earning. This asset is usually CAKE.
You don?t have to face the risks of impermanent loss and the APY is much higher than on centralized platforms. For example, right now, you can farm ATA on the BINANCE Launchpad and on the ATA syrup pool. Binance has an APY of 1,66% when you farm with BUSD and a 5,6% APY when you farm with DOT. The APY on the syrup pool is 83,9%.
It is a simple way to earn a high APY with low risks.
How To Use The Syrup Pool
You need to hold some CAKE and a small amount of BNB (BEP20) in a Binance Smart Chain-compatible wallet. You can buy some CAKE and BNB on Binance and withdraw the Binane Smart Chain versions to your private wallet.
Go to the Pancakeswap syrup pools and connect your wallet by clicking the Connect button on the top right-hand side.
Choose the pool you lake to stake in and click the Enable button. Confirm the action in your wallet and the Enable button should be replaced with Stake. Click the button to bring up the staking menu.
Choose the amount of CAKE you like to stake and click Confirm. Again, confirm the transaction in your wallet.
Now you are able to see the details of your stake in your Syrup Pool. The pools will show a Collect button to harvest your staking rewards.
Only the Auto CAKE syrup pool will show a countdown until the unstaking fee is ending.
Auto CAKE And Manual CAKE
Among the syrup pools, you will find two different CAKE to CAKE pools, auto CAKE and manual CAKE. Both pools let you stake your CAKE tokens to earn more CAKE tokens.
When you choose the manual CAKE pool, you need to harvest and reinvest your CAKE by yourself. The interest is displayed as APR, which doesn’t include compounding.
Deposits of SYRUP Tokens will be made to your wallet upon staking. Make sure to keep the Syrup tokens in your wallet as they represent your staked amount of CAKE. Syrup acts as proof of ownership over your manual-staked CAKE. If you send or sell them, you won?t be able to claim your tokens.
When you choose the auto CAKE pool your staked CAKE tokens will be automatically reinvested. A small transaction fee is subtracted from your earnings every time the pool is automatically reinvesting. The interest is displayed as APY, which includes compounding.
An unstaking fee only applies when you unstake within three days of manually staking.
In opposite to the manual CAKE pool, the auto CAKE pool does not deposit SYRUP to your wallet upon staking.
My Final Thoughts
If you have never used DeFi before, I hope I could encourage you to give it a try. Using the Pancakeswap Syrup Pools is relatively easy and it offers high APYs with low risks. Don`t say I haven't told you. ??
Finally, I also like to remind you that my intention in this post is to raise your awareness of DeFi and the Pancakeswap Syrup pools and my intention is not to replace your own research. However, nothing in this post is sponsored. It really reflects my own opinion.
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