CAKE on PancakeSwap (110% APY)

PancakeSwap’s native token CAKE currently returns 110% APY. Assuming this APY doesn’t change, this means staking 1 CAKE today means you’ll have 2.1 CAKE in a year’s time.

But what about daily returns? Using our formula, an APY of 110% translates to a daily return of 0.2%.

This means if you stake 100 CAKE, you’ll make 0.2 new CAKE in the next day. At the current price of $16, this means you’ll make about $3.20 of passive income every day from an investment of 100 x $16 = $1,600.

BUNNY on Pancake Bunny (225% APY)

Pancake Bunny is the biggest yield aggregator on the BSC. Yield aggregators employ automated strategies to maximise your returns. Its native token is BUNNY, which currently returns 225% APY.

The formula tells us if we stake 100 BUNNY (100 x $18 = $1,800 right now), we’ll make 0.3% new BUNNY today, which is $5.81.

MDX on Beefy Finance (264% APY)

MDX is the native token of the MDEX exchange, currently returning 264% APY on the Beefy Finance platform. Beefy Finance is another yield aggregator. A nice thing about Beefy is they tell you both the APY and daily return.

But we’ll use the formula to confirm anyway.

ATA-BNB LP on Beefy Finance (335% APY)

We now move onto dual-asset staking. Specifically, liquidity mining.

This entails adding liquidity for a pair of tokens into a pool and then staking the liquidity pool tokens. I talk about this more here.

Here, I first earned ATA on PancakeSwap by staking CAKE, and then added some ATA-BNB liquidity into the PancakeSwap pool. This will start earning me liquidity fees.

(ATA is the token for Automata, a recently launched project on the Binance Launchpool.)

I then staked the LP tokens on Beefy Finance for an APY of 335%, a second source of passive income. This works out to be a daily return of 0.4%. Pretty nice!

It’s nice that liquidity mining gives two sources of passive income: LP token rewards + liquidity fees.

The main risk is impermanent loss, which occurs when the value of one asset deviates away from the other. For instance, if BNB goes up in price by 100% but ATA only goes up by 50%, we have impermanent loss.

On the BSC, you’re generally providing liquidity for BNB + some other altcoin. This means a very high chance of impermanent loss, as there are very few coins that maintain a proportional move with BNB. The main one is the premier token of the Binance Smart Chain — CAKE — which historically maintains a CAKEBNB price of roughly 5% over time. In other words, allowing for normal market fluctuations, the price of CAKE is generally around 5% of a BNB.

HOTCROSS-BNB LP on Beefy Finance (849% APY)

Another project I like is HOTCROSS, a recently-launched DeFi platform. Buying some HOTCROSS on either PancakeSwap or HotCross, we can add HOTCROSS-BNB liquidity on PancakeSwap and stake the LP tokens on Beefy Finance for a handsome APY of roughly 850%. This returns roughly 0.6% daily.

WINGS-BNB LP on Beefy Finance (12,000%+ APY)

Finally, something wild.

WINGS is the native token for the new JetSwap DeFi platform. Adding WINGS-BNB to the JetSwap pool and then staking the LP tokens on Beefy Finance returns a whopping 12,000%+ APY, which works out to be 1.3% daily.

Please be aware that the APY’s are high for a reason — you’re being rewarded by taking on risks. Here, there are a number of risks. You have the possibility of:

• hacks or rugpulls on JetSwap, a fairly new platform
• hacks or rugpulls on Beefy Finance (less likely)
• impermanent loss (very likely)

Like they say, high risk high reward right?

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.com/swlh/cryptocurrency-passive-income-on-the-binance-smart-chain-babff31a45f6?source=rss——-8—————–cryptocurrency