How to Earn Passive Income on the Binamon Yield Farms
Do you want to earn high APY and reap that sweet passive income?
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We’ve got you covered!
In this article, We’re going to walk you through how to farm Binamon tokens, including creating your own Liquidity Pool (LP) tokens and harvesting your rewards.
Let’s kick it off with…
What is Yield Farming?
Yield farming is the process of staking your cryptocurrency tokens to earn rewards. Yield farming typically requires an investor to deposit tokens into a liquidity pool (or a collection of funds locked in a smart contract), which in turn earns them interest from trading fees and other rewards.
In the case of Binamon’s yield farming, you’ll need to deposit 2 different types of cryptocurrency tokens in order to become a staker and start farming (We’ll explain more later).
How Do I Start Yield Farming Binamon Tokens? (Desktop Version)
First, head on over to our Farming Pools page on desktop.
You’ll be greeted with a list of 18 farms, with the ability to earn either BMON, BMON-Z1 or BNRG tokens:
Step 1. Choosing Your Farm
There are currently 21 types of yield farming pools:
- BGPWR/BNRG
- BGPWR/BMON
- BMON/BNRG
- BEPWR/BNRG
- BGPWR/BNRG
- BGPWR/BMON
- BMON-Z1/BMON
- BMON/BMON-Z1
- BNRG/BMON-Z1
- BMON/BNRG
- BMON-WBNB/BMON
- BGPWR/BNRG
- BGPWR/BMON
- BMON-BMON-Z1/BMON-Z1
- BNRG-BUSD/BNRG
- WBNB-BNRG/BNRG
- BMON-WBNB/BMON-Z1
- BMON-WBNB/BNRG
- BMON-BUSD/BNRG
- BMON-BNRG/BNRG
- BMON-BMON-Z1/BNRG
Depending on what tokens you want to stake and what you want to earn, the farm you choose might differ.
Now let’s use the BMON-WBNB/BMON-Z1 farm as an example and break down what these numbers mean:
The first set of 2 tokens (BMON-WBNB) represents the tokens you’ll need to enter the liquidity pool. In this case, we’ll need BMON and WBNB tokens. The token after the forward slash is the token you’ll earn, which is BMON-Z1.
You’ll also notice the ‘Rewards per block,’ how many BMON-Z1 tokens this particular liquidity pool will reward its stakers for each block of time.
There’s also the ‘End Block’ time, which indicates when the liquidity pool will close. You can see the exact time the pool will close by going to BscScan and inputting the end block on the top-right of the screen. In this case, the liquidity pool countdown can be found here.
And now for the part you’ve been waiting for — you can find the APY, or annual percentage yield, of each farm. To find out exactly what APY is, you can check out this article here.
Here, we have 146% APY — quite juicy!
Step 2. Adding Liquidity On PancakeSwap
Now that you’ve chosen the farm you want, let’s get those liquidity pool (LP) tokens!
Wait, liquidity?
Yep! You do have the tokens you’ll need, right? (In this case, BMON and BNB or WBNB.) If you don’t know how to buy the correct tokens, follow our simple guide.
Now we’ve got to “pair” them together and create Liquidity Pool tokens. No worries, the process is simple.
First, head on over to PancakeSwap Finance.
Once there, make sure your wallet is connected by clicking on the ‘Connect Wallet’ button on the top-right corner. After that’s done, click on the ‘Trade’ dropdown on the menu bar on the left, and click on ‘Liquidity.’
Once that’s done, you’ll likely be greeted with a screen that says “No liquidity found.”
That’s totally OK!
You don’t have any LP tokens yet, so let’s get to creating.
Click the ‘Add Liquidity’ button and select your first crypto asset for input. We’ll choose BMON in this case. Then, select your 2nd cryptocurrency. We’ll also choose BNB since we want to farm in the BMON-WBNB/BMON-Z1 pool. (You can also choose WBNB as the 2nd crypto asset for this pool since that also works.)
You’ll notice that PancakeSwap automatically chooses an equal amount of the 2nd crypto asset, since you’ll have to provide equal values of each token in the liquidity pool.
Once your tokens are chosen, hit the ‘Supply’ button to get your LP tokens!
Step 3. Staking Your Tokens
Now that you have your LP tokens, let’s head back to the Farming Page.
Click on the button that says ‘Connect’ on the farm you’re going to stake in.
Next, you’ll want to hit the ‘Connect’ button for the farm you want to put your funds into. You’ll now be able to input the amount of LP tokens you’ve entered and confirm the transaction.
Special Note: If you’re getting a high transaction fee error, try reducing the total amount that you stake. For example, if you have 10.199 LP tokens, try 10.198 or even 10 instead.
How Do I Start Yield Farming Binamon Tokens? (Mobile Version)
It’s quite simple to farm on either Trust Wallet or MetaMask Mobile.
Generally, you’ll want to follow the above steps to start farming on mobile. You’ll be greeted with a slightly different interface, but the steps are generally the same.
Are There Any Risks to Farming?
Farming isn’t 100% risk-free. There are a few risks to keep in mind when farming tokens:
- Fees. Pancakeswap does charge a fee for farming Binamon’s tokens, from swapping to the farming pair’s tokens, to BNB gas fees for transactions. Generally, the fees are quite low, but keep in mind you’ll need some BNB to pay for gas fees, and each time you swap tokens there is a small fee taken.
- Impermanent loss. Every time you stake in a pool, you’ll need to familiarize yourself with the concept of impermanent loss. In a nutshell, when the price of the tokens you’re pairing increases or decreases, this will also affect the amount of tokens you receive when you withdraw. For a more detailed explanation, head on over to Binance’s article.
Yield Farming = Mega Gains!
So there you have it! Once you get into the groove of yield farming, you’ll be able to earn some nice passive income in just a few simple clicks.
So sit back, grab your favorite bottle of soda, and watch the earnings come in as you reap Binamon’s new yield farming rewards!
And make sure to join our Discord server if you have any other questions!
About Binamon
Binamon is a complete gaming metaverse of digital monsters. The Binaverse offers four ways to earn — reliving our childhood fun playing, battling, staking and trading while creating a huge network of people with the same passion.
