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How to Stake $FARM on Bancor in a Single-Sided Manner [In-Depth Tutorial]

Learn how to stake $FARM to earn fees, $BNT rewards, and receive Impermanent Loss Protection.

Dear Farmers,

The Bancor DAO recently passed two votes in favor of $FARM

In this tutorial, we’ll show you how to deploy your funds on Bancor’s $FARM / $BNT Pool, enjoy its unique features, and most importantly how to get those sweet yields! 🥖

For whom is this tutorial? 👨‍🌾

This article is for those who are familiar with the concept of liquidity provision and would like to get their feet wet with Bancor’s LP mechanism while putting $FARM work.

***

First, let’s take a look at Bancor’s unique features for Liquidity Providers.

Single-token exposure allows you to deploy just one asset into the Pool and enjoy its benefits. Unlike Uniswap, which requires 50/50 weight between the two tokens, Bancor allows you to proceed with just $FARM and let the protocol handle the rest.

Impermanent Loss (IL) Protection is Bancor’s unique feature among AMMs. For example, if you stake 1 $FARM token and its price triples, you still will be entitled to withdraw its full value plus trading fees & rewards after a certain period of time.

1. Deposit $FARM to the Pool 🚜

👉 Open Bancor’s list of pools: https://app.bancor.network/eth/data

🔎 Search for farm

As you can see the Farm pool is currently offering a 52.2% APR (9.47% from swap fees, paid in FARM, and 43.05% from BNT rewards, paid in BNT).

Hit the blue [+] button to add liquidity to the $FARM / $BNT pool.

You should see a box to provide single-sided liquidity.

At the moment of writing, there is available space for 11,508 FARM to be deposited in a single-sided manner.

It means that there is a corresponding value in $BNT tokens waiting on the sidelines to be put to work once you deposit your $FARM.

In our tutorial, we enter 2 FARM tokens into the input field and hit [Stake and Protect]. By doing so, you agree for Bancor to execute these two actions for your FARM.

Since you are depositing $FARM for the first time, Bancor will ask you to Approve Token spending.

There are two ways to do so:

  • Unlimited Approval — gives Bancor permission from now on to spend your FARM tokens in an unlimited manner — better for those who want to save on gas and fully trust Bancor’s smart contracts.
  • Limited Approval — lets Bancor spend only the amount you’ve entered. Bancor will request approval again if you decide to deposit more $FARM tokens in the future. A less gas-efficient option for those who deeply care about security.

After proceeding with one of these options, your wallet will ask you to confirm the action and pay a gas fee to the Ethereum network.

2. Portfolio Overview

Once the transaction is successful, your $FARM will be part of the $FARM / $BNT pool.

If the browser doesn’t redirect you automatically, head over to
https://app.bancor.network/eth/portfolio

Here, you will be presented with a dashboard with a bunch of numbers that tell you exactly what’s going on around your deposited $FARM.

My Stake Box

This box summarizes the value of your staked liquidity and fees across all your positions. Currently only displayed is the data from our freshly deposited 2 $FARM tokens.

Protected value — total value of your tokens eligible for Impermanent Loss coverage (eligible doesn’t mean that you’ve received the coverage yet)

Claimable Value — total value of tokens that you can withdraw anytime

Total Fees — the number of fees your positions collected. Since our position is brand new, we have only collected $0.01 in fees. It’s something!

Stake (pink box) — A quick link to another page to deposit more tokens into Bancor.

Rewards Box

Total reward to date — your total collected rewards across all positions in your addresses’ lifetime.

Claimable Rewards — $BNT rewards yet to be re-staked into Bancor or claimed via the [Withdraw] button ( yellow box).

The nice thing is that Bancor adds rewards to your account each second, the fees are auto-compounded within each pool position and rewards can be manually restaked to Bancor to compound yield

My Protected Positions

Here you can see a detailed breakdown of your $FARM position.

Fees & Rewards (orange box) — see how many FARM fees and BNT rewards you’ve earned inside the FARM/BNT pool.

Multiplier (red box) — Starting at 1, your multiplier increases by .25 each week until reaching 2. At which point, you are getting twice the rewards you were on week 1.

Current Coverage (blue box) — to be eligible for 100% coverage, you need to stake your $FARM for a period of 100 days. It gradually increases 1% per day until you reach 100% protection.

3. Withdrawing from Bancor

Whenever you feel like it’s time to withdraw your tokens from Bancor, follow these easy steps below.

Withdrawing $BNT Rewards

When clicking the Withdraw (orange) button, you will face the following screen.

Any withdraw of $BNT into your wallet results in resetting your multiplier back to x1.

To keep your multiplier, you can re-stake your rewards instead and leave them on Bancor by doing so. This option won’t result in $BNT rewards being sent to your wallet.

Withdrawing $FARM

Once you are done with liquidity provision, you can fully or partially withdraw your $FARM from the pool by clicking this button first:

Then, the following box will appear.

Here you can partially or fully withdraw your initial deposit plus earned fees. You may note that with selected 100%, we are not eligible to withdraw the initial 2 FARM tokens (+ fees) just yet as a portion of it has been already traded in the pool.

Extra note: to be eligible for protection when withdrawing, you need to stake $FARM in the pool for at least 30 days.

After hitting the [Continue] button, all you need to do is to confirm the transaction and you will receive $FARM to your wallet.

***

Recommended reads

About Bancor

Bancor is a decentralized liquidity protocol that offers a simple and safe way to trade crypto and earn yield on your favorite tokens. The protocol is made up of a series of smart contracts designed to pool liquidity and perform automated trades with no counter-party. Users stake their tokens in exchange for trading fees, liquidity mining rewards and voting rights in the Bancor DAO.

Unique to Bancor is the ability for users to stake and maintain single-asset exposure and with protection against impermanent loss. Bancor generates millions in transaction fees for its liquidity providers and BNT holders per month across 1000s of tokens including ETH, WBTC, LINK, MATIC, FARM & more.

Connect with Bancor: Website | Twitter |Discord

About Harvest Finance

Harvest is an asset management platform that maximizes yield for assets deposited by users. Harvest reduces gas costs and develops cutting-edge strategies to become the stop-shop of yield farming in DeFi.

Connect with Harvest: WebsiteTwitterDiscord

***

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information may be accurate. Consult a financial professional before making any financial decisions.

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Your hard work is about to become easier with Harvest 🚜 It ain’t much, but it’s honest work.

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