Popular cryptocurrency exchange Binance has released Launchpool, a method that allows users to earn revenue by using tokens for yield farming. According to a Binance announcement, Launchpool users will be able to stake Binance’s native BNB token and BUSD stablecoin, as well as other tokens, for interest-bearing rewards. Here’s everything you need to know about yield farming on Binance…
What is yield farming?
In DeFi, yield farming is the concept of making a profit on your assets by investing them in interest-generating DApps. Yield farming allows users to earn passive income from their idle assets by utilizing the decentralized ecosystem developed on Ethereum, Binance Smart Chain or other smart blockchains. As a result, yield farming is changing the way investors HODL in the future.
Yield farming often relies on liquidity pools. Asset holders can provide their liquidity to lending platforms or decentralized exchanges (DEX). In return, the liquidity providers receive interest in the form of fees incurred when others access their funds to borrow or exchange tokens.
What is Binance Launchpool and How to Yield Farm on Binance?
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Launchpool allows Binance users to get new coins when they stake their BNB, BUSD and other tokens on the Binance Smart Chain mainnet. The number of tokens users create each day is proportional to the number of tokens they contributed to the pool compared to the total amount of tokens contributed to the pool.
Launchpool is used to list new tokens for Binance. Farming starts 7 days before listing and lasts 30 days in total. Farmed coins are paid daily. The coins used can be withdrawn at any time during the 30 days. This way, BNB, BUSD and ARPA coin holders will be the first to receive any new coins launched on Binance.
how to start
For Binance desktop users:
Yield farming on the Binance desktop
- Go to the Savings page.
- Go to Flexible Savings
- Select any coin with the Launchpool tag (BNB, BUSD, etc.)
- Click Transfer for the token you want to use to subscribe.
- Enter the number of tokens you want to add to the pool
- Click Transfer Confirmed
For Binance app users:
Yield farming on the Binance app
- Go to the Savings page.
- Go to Flexible Savings
- Select any coin with the Launchpool tag (BNB, BUSD, etc.)
- Click Transfer for the token you want to use to subscribe.
- Enter the number of tokens you want to add to the pool
- After reading, check the Binance Savings Service Agreement.
- Click Confirm Purchase.
Anyone with a Binance.com account can participate in the launch pool. All that is required is a coin balance greater than 0.1 (e.g. 0.1 BNB) of any pool supported token, with no caps.
Binance Launchpool and the Bella Protocol (BEL)
As mentioned earlier, Binance Launchpool will compensate users for staking BNB, BUSD and ARPA. Binance also announced the first project on Launchpool called Bella Protocol (BEL).
Users can stake their BNB, BUSD, or ARPA tokens in three different pools to farm BEL tokens over a 30-day period. In this process, Binance will also list the Bella Protocol (BEL) and then open trading for the BEL/BTC, BEL/BNB, BEL/BUSD and BEL/USDT trading pairs.
Diploma
Yield farming is changing the way people HODL cryptocurrencies. It allows crypto enthusiasts to earn interest on their idle assets. However, because it is a relatively new and evolving concept, yield farming may pose unknown risks, such as smart contract failures. It is always important to thoroughly research any project before allocating any assets to it.
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