Providing Liquidity in Pools for Farming
Dear Steak Community,
With the new SBF/BUSD pool launch, we would like to recap how to provide liquidity to pools to earn SBF. This skill set could help you farm in SteakBank’s pools, and be applied in other platforms. It applies to the SBF/BUSD pools and LBNB/BNB pools.
We will begin with a general understanding of what is a pool, before going into the steps of how to supply liquidity.
Pools in the decentralized finance space generally refer to liquidity pools. Liquidity pools allow exchanges to match orders without an order book. In order to do so — to let users trade between SBF and BUSD for example — they need both assets in said pool.
Liquidity providers deposit both tokens into the pool’s smart contract to allow orders to be matched. On SteakBank liquidity pools are made up 50% of one asset and 50% of the other, meaning that when users supply the assets they need to supply an equal value of each.
supplying the assets, both the assets value supplied will be of equivalent value.
Let’s assume an SBF token is worth $10,
if a user is to supply a total of $100 worth of capital. It would mean that he would be supplying $50 worth of SBF and $50 worth of BUSD. Therefore he should be supplying 5 SBF tokens, and 50 BUSD. ( 5 SBF + 50 BUSD ) = $100.
now, let’s get into the details of supplying liquidity step by step:
Step 1: Go to the Farming Page,
Users can then decide if they want to provide liquidity to LBNB/BNB pools or SBF/BUSD pools. They will have to first approve the pools before providing liquidity.
Step 2: (Using the SBF/BUSD pool as example, after pressing approve, a MetaMask push notification will pop-up and ask for the user to confirm a transaction approving it,) Press confirm.
After confirming, the user will see the UIUX change to one that allows them to deposit, withdraw, and harvest their earnings:
Step 3: Click on provide liquidity.
This will takeyou to the add liquidity page on PancakeSwap.
Click on these two buttons to change to the pairs you would want to provide liquidity to. In the case of SBF/BUSD, you should switch the tokens to SBF and BUSD. ( If you are supplying LBNB/BNB, then it should be LBNB and BNB )
Step 4:
Users can either search for the SBF token in the search bar, or, if it is not being displayed, add the contract address in the search bar, and press “add”.
Step 5: Select both assets for the pair, and input the value for one of them. The other asset will be automatically filled. Then press “SUPPLY” below
Step 6: Confirm the supplying transaction again.
MetaMask will issue a pop-up again to confirm the transaction. Press confirm.
Step 7: Once that is done, head back to https://app.steakbank.finance/farm
You will see that the “Deposit” button is now clickable.
Click on Deposit.
You can select the maximum amount available in your wallet, and press confirm. Once it is confirmed. It is done!
Step 8: Once you are able to see the ‘Withdraw’ and ‘Harvest’ buttons, and Pending rewards start to accumulate SBF rewards, you are done!
About SteakBank
SteakBank is a Binance Smart Chain (BSC) liquid staking platform. It allows derivative tokens to be issued on the BSC blockchain through the BEP20 standard. These representative tokens can then be used for liquidity farming or as collateral for decentralized lending, enabling users to earn multiple income streams from one single asset.
A simple yet powerful project, SteakBank aims to solve the liquidity issue found in the current DeFi sector. Currently, when users stake with validator, their tokens are locked up and unable to be used for other yield generation purposes such as liquidity providing, or lending. SteakBank is able to solve this problem and improve user’s capital efficiency.
Steakbank not only benefits token holders and project ecosystems by optimizing capital efficiency but also allows the communities to earn additional income without the need for further token allocation.
Steakbanks’ native token, SBF, will also be rewarded when users stake their liquid token in SteakBank’s liquidity pool.
