Staking On Pancakeswap – Earn Up To 122% APY | How It Works!

I’ll show you how staking on Pancakeswap works in today’s post.

Pancakeswap is one of the most popular food-themed DeFi projects.

And it offers users opportunities to earn passive crypto income like staking.

Users earn up to 122% return on their investment when they stake on this platform.

Are you ready to see how to stake on Pancakeswap and win big?

Let’s get to business!


Post Summary


How Staking On Pancakeswap Works

Before I show you how to stake on Pancakeswap, let’s talk about the platform briefly.

A brief overview of Pancakeswap

what is pancakeswap

PancakeSwap is an AMM that runs on the Binance Smart Chain.

Anonymous developers launched the platform in September 2020.

It allows users to swap tokens, provide liquidity, and earn from trading fees.

Also, they can farm liquidity provider (LP) tokens to earn CAKE, the native coin of Pancakeswap.

Plus, they can stake CAKE to earn other tokens like MIX, METIS, etc.

You can read our complete review of this platform here: PancakeSwap Finance (Review): Earn Over 100% APR From Syrup Pools!

Moving on to what brought us here, staking on Pancakeswap takes two forms:

  • Pools
  • Farms

I’ll now show you how each one works…

Staking on Pancakeswap (I) – Pools

staking on pancakeswap pools

Here, the goal is to stake CAKE and earn new tokens.

At the moment (26/05/2022), 6 six pools are available and the coins you can earn from them are MIX, GAL, METIS, RPG, and ANKR.

If you don’t own CAKE, you can get it from the Pancakeswap Exchange or other exchanges that support the coin.

Then follow these steps to stake CAKE:

i. Go to Pancakeswap.finance and click on “Connect wallet”

ii. Select your preferred wallet from the available options

iii. Once your wallet is connected, click on “Earn” from the top menu and select “Pools”

staking on pancakeswap pools

iv. Find the coin you need and click on it. You’ll see details like the APR and a link to learn more about the coin.

v. If you like what you see, click on “Enable”

pancakeswap pools

vi. Then confirm the transaction on your wallet.

Also, you can click on the “Calculator” icon to see how much you’ll earn when you deposit a certain amount and leave it for a given period.

  • staking on pancakeswap calculator

Notice you can stake for 1 day, 7 days, 30 days, 1 year, or 5 years.

And the longer you stake your coin, the higher your reward.

vii. Whenever you wish to withdraw your earnings, go back to the same pool and click on “Harvest”

Note that the APR may change because of market trends.

Next, let’s see how to stake on Pancakeswap Farms.

Keep reading!

Staking on Pancakeswap (2) – Farms

stake on pancakeswap farm

On Pancakeswap Farms, LP tokens are staked to receive CAKE.

You receive LP tokens when you supply liquidity to any of the pools on Pancakeswap.

For example, if you supply liquidity to a  pool, you’ll receive BUSD/EPS LP tokens.

You can then stake the LP tokens on Pancakeswap Farms to earn CAKE.

How to:

i. Go to Pancakeswap.finance and connect your wallet as we did earlier.

ii. Click on “Earn” from the top menu and select “Farms”

staking on pancakeswap farms

iv. You’ll see a list of Farms, search for the coins you have their LP tokens.

Click on it to see relevant details there like APR and Multiplier.

The Multiplier shows the amount of CAKE each farm will receive per block.

For example, if a 1x farm received 1 CAKE per block, a 40x farm would receive 40 CAKE per block.

And using the calculator, you can determine the amount of CAKE you’ll receive based on your deposit.

vi. Then click on “Enable” and confirm the transaction on your wallet.

vii. Again, when you’re ready to withdraw your earnings, go back to the same Farm and select “Harvest”

Bravo!

[Suggested Read: What is Yield Farming? – What It Is and How It Works]

But is it profitable to stake on Pancakeswap?

Read the next section to know what I think.


Is Staking On Pancakeswap Profitable?

No, it isn’t. And I’ll tell you why.

Staking CAKE means that you want to hold the coin for a long time and make profits daily.

You’ll make profits alright but in the end, you’ll lose a huge chunk of your capital.

I say so because the CAKE token is inflationary and as such, its value decreases over time.

Additionally, the Pancakeswap does not have a stable APY, it changes with market trends.

You may stake your coin at the rate of 100% APY only for it to reduce to 50% in 3 months. Oops!

Also, every liquidity added to a CAKE pool means new CAKE tokens are released into the market.

Needless to say, the coin’s value will continue to drop as more CAKE tokens flood the market.

However, if you stake the coin for a short period of time, you may save your capital but the profit will be small.

A better option will be to trade the coin on the Pancake exchange for other tokens and cash out your profit.

Just watch this video to get a clearer picture of what I am saying.

Then come back for the concluding part of the post. 😉


Conclusion

We have now come to the end of our discussion on how staking on Pancakeswap works.

I hope it was worth your time.

Now, I’d love to know if you’ll consider staking on Pancakeswap.

Perhaps, you already did, what has been your experience? Do you agree that it is not profitable to stake CAKE?

Let me have your responses in the comments section below.

Also, share this post with your friends, thank you!


Don’t miss…

Chinma Udeji
Le's connect

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.