How to Earn VINU by staking your LP from PancakeSwap

Published in

VINU | Vita Inu

6 min readFeb 21, 2022

As we all know, Vita Inu (VINU) is now live on BNB Chain and on PancakeSwap. Here’s a guide on how to stake VINU in Liquidity Pools on PancakeSwap, to earn rewards!

What is a liquidity pool?

Liquidity pools are an essential part of Decentralized Finance (DeFi) systems. The basic idea is simple — tokens are put into a big pool, which is managed by a smart contract. Swaps or trades are executed via these liquidity pools. For instance, when someone tries to buy VINU using USDT, their transaction involves depositing USDT into a liquidity pool, and withdraws VINU from that pool. When someone sells VINU for USDT, their transaction involves depositing VINU into the liquidity pool, and withdrawing USDT from that pool. All these actions are automatically and seamlessly executed by a smart contract.

Staking your VINU tokens in a liquidity pool allows you to earn trading fees as rewards

Many DeFi systems allow anyone to stake their tokens in liquidity pools, to earn rewards. The reason is simple. The more people stake their tokens in liquidity pools, the more liquidity there is, and the less volatile the price of the token will be. This means that people can make bigger trades or swaps via the liquidity pool, without having a big impact on the price.

In order to encourage users to stake their tokens in liquidity pools, most DeFi systems offer various incentives and rewards. Let us consider the rewards for doing so on PancakeSwap.

On PancakeSwap, there is a 0.25% fee (based on the size of the trade) on all trades (https://docs.pancakeswap.finance/products/pancakeswap-exchange/pancakeswap-pools). Of this amount, 0.17% is added to the liquidity pool as a reward for users who stake their tokens. Let’s see how it works out in practice.

A user uses 1000 USDT to buy 100,000,000,000 VINU.
The trading fee for this trade is 0.25% = 2.5 USDT and 250,000,000 VINU.
Of this amount, 0.17% is added back to the liquidity pool = 1.7 USDT and 170,000,000 VINU. The rest goes to the PancakeSwap platform.
This amount can be split by the users who stake their tokens in the VINU/USDT liquidity pool, based on the proportion of their tokens relative to the size of the entire pool.

The more people make trades on PancakeSwap via your selected trading pair / liquidity pool, the more rewards you earn! For example, if there is a daily trading volume of $1,000,000 on the VINU/USDT trading pair, $1700 will be split among everyone who has staked their tokens in the liquidity pool!

How to stake VINU in liquidity pools on PancakeSwap

Before we begin, you will need $VINU tokens on the BNB Chain, as well as some USDT, BNB or CAKE. For a guide on how to bridge your VINU (Vite) to VINU (BNB Chain), see here: https://medium.com/@VitaInu/how-to-bridge-vinu-to-binance-smart-chain-trade-on-pancakeswap-bc2e08fbdb9b

Visit PancakeSwap at: https://pancakeswap.finance/
Click “Connect Wallet”

3. In this example, we will be using the MetaMask wallet. You can select other wallets too.

4. Approve the connection to PancakeSwap.

5. After you have successfully connected, select “Trade”. Then click on “Liquidity”. Finally, click on “Add liquidity”.

6. Select the first currency.

7. Select “Manage tokens”.

8. Select “Tokens”, and enter the VINU contract address (0xfEbe8C1eD424DbF688551D4E2267e7A53698F0aa). Then, click “Import”.

9. Check “I understand”, then click “Import”.

10. VINU will now be seen on the tokens list. Select it.

11. Select the second currency. You can select 3 different currencies, corresponding to the three VINU trading pairs — VINU/USDT, VINU/BNB and VINU/CAKE. In this example, we will be staking VINU and BNB into the VINU/BNB trading pool.

12. Enter the amount of VINU or BNB that you wish to provide. The system will automatically select an equal amount of the other coin. Notice that the system will also show you the proportion of your staked tokens, relative to the whole pool. Here, we see that supply 1 BNB and an equal amount of VINU (35,349,100,000 VINU) is equivalent to 17.65% of the pool. This means that you get to share 17.65% of all the trading fees on this trading pair! Click “Supply” to proceed.

13. When the staking is complete, you will receive VINU-BNB LP (Liquidity Pool) tokens. The number of VINU-BNB LP tokens you hold, represents your portion of the VINU/BNB liquidity pool. And you’re done! You begin earning rewards immediately.

Remember, the more people who make trades on PancakeSwap via the trading pair / liquidity pool that you have staked your tokens on, the more rewards you earn!

Staking your VINU-BNB LP tokens on BeefStake to earn more rewards

Recall that once you have staked VINU/BNB into the liquidity pool, you will receive VINU-BNB LP tokens. These tokens can now be bridged back to the Vite network, and staked to earn rewards on BeefStake (https://stake.vitc.org)!

This means that you can earn two rewards: (1) for staking VINU/BNB on PancakeSwap, and (2) for staking the VINU/BNB LP tokens on BeefStake!

Here is how you can do so, and maximise your potential rewards:

Add the VINU-BNB LP token on your MetaMask. Click ‘Import tokens’

2. Add the contract address: 0xdd9114597217125d60f67Ebf099F0E9570954F46

The Token Symbol will be displayed as ‘Cake-LP’ rather than ‘VINU-BNB LP’. That is normal — as long as you have the correct contract address, you do not need to worry.

3. Import the token

4. Now you will see the token appear in your MetaMask. If you already have VINU-BNB LP tokens, the amount will be displayed too.

5. Now, open your Vite wallet app, and click on the “+” button on the top right.

6. Type in ‘VINUBNB’ to search for the token

7. The VINUBNB token will now appear in your Vite app. Click on it.

8. Click on ‘Cross-Chain Deposit’

9. You will see the deposit address for your VINU-BNB LP tokens, on the BNB Chain. From your MetaMask, send your ‘Cake-LP’ token (on MetaMask) to this address. You should receive your tokens soon.