Passive income by staking cryptocurrencies with the DeFi and Beefy
Hi folks ! If you read this article it means you are interested in DeFi and especially in staking tokens to earn more tokens. You will learn in a few steps how to stake tokens in a Single Assets vault on Beefy. In this article I will show you how to stake SXP. Note that SXP is volatile, so you can earn passive income by choosing a stablecoin that match $1 (e.g. USDT, BUSD), it would be safer.
What are the benefits for you to stake tokens ? Earn more tokens !
You can stake tokens to earn the same type of tokens or you can stake tokens to earn some others type of tokens depending on the vault or pool you choose !
In this article we will use 2 apps and 1 site within an app:
— Binance (or any other exchange where your crypto are) https://www.binance.com
— Trust Wallet: Decentralised Wallet to access to the DeFi inside Trust Wallet, eventually Beefy. Trust Wallet on the App Store and Play Store
You can use any other Wallet like Metamask or Binance Chain Wallet but my favorite one is Trust.
I won’t show you how to create a wallet in Trust because there is already a bunch of tutorials online including the own tutorial in the Trust app when you open it for the first time.
Well, that’s it. So let’s get started.
Disclaimer: Anything said in this article is not financial advice. I do not take the responsibility for any losses. Continue at your own risk, trading and using DeFi is risky. DYOR before investing.
The first thing you need to keep in my mind along this tutorial is that everything we will do will transit via the Binance Smart Chain. The benefit from that is to reduce the huge fees that the Ethereum network takes on each transaction. So all of our fees will be paid in BNB so that’s why we need some.
Here is the red line we will follow:
— Transfer BNB to your Trust Wallet via Binance Smart Chain (BEP20)
— Transfer SXP to your Trust Wallet via Binance Smart Chain (BEP20)
— Access and connect your Trust Wallet to Beefy.
— Approve the vault
— Deposit SXP in the vault
Get your Trust Wallet BEP20 address from Trust Wallet:
Search for “Smart Chain” and copy the address:
Withdraw BNB from your exchange (here Binance) to your Trust Wallet BEP20 address:
Find BNB in spot, and click on the withdrawal button
Enter your Trust Wallet BEP20 address and select the BEP20 network !! As you can see on the screenshot, if you don’t select the BEP20 network your funds will be lost forever.
Depending on your security settings you would need to add the address in the “Withdrawal addressed”, for that “Settings -> Withdrawal addresses“ or look on Binance academy.
A dozen of seconds later you should receive your BNB in your wallet.
Now let’s repeat those previous steps with the SXP token:
Find your SXP BEP20 address and copy it
Find SXP in Spot and Withdraw your SXP to the copied address and do not forget to select the BEP20 network !!
You should receive your SXP a few seconds later.
Now that we have all the tokens we need, let’s open Beefy.
For iOS users you need to “enable” the “Browser” tab of the app which is the equivalent to the “DApps” tab on the screenshots. To do it, type “trust://browser_enable” in your URL field on Safari and open with Trust when the pop up shows up, here is the link of the documentation on Trust website
Now click on the DApps/Browser tab then click on the “See all” in the “New DApps” section and Find Beefy Finance then click on it
You should now be on “app.beefy.finance”. Now, select the “Smart Chain” network by clicking on the Binance Logo.
Now that we are on Beefy with the Smart Chain network, let’s connect our Wallet. So click on the 3 horizontals lines then on the “wallet” button and follow the steps
Once your wallet is connected (you can see the address of your wallet replaced the “wallet” button) we will start some actions with Beefy.
Disclaimer: Every Approve, Deposit or Withdrawal is submitted to fees. Approve is taking very cheap fees (less than 0.5$) but any Deposit or Withdrawal require around at least 5$ fees !(varying according to the amount of tokens) So before doing a deposit or a withdrawal think twice.
Find the SXP vault by filtering asset with SXP and vault type with “Single asset”
Once you found the SXP vault, click on it. You can now see the interface of the vault. As you can see, you need to approve the vault before accessing it. So click on Approve then an approbation page will show up and will require confirmation that let you know how much fees it will take to execute the action.
Once you confirmed it, you should be able to see the 2 buttons “deposit” and “deposit all”. Click on one of these 2 buttons (if you choose deposit, obviously you need to enter an amount of tokens). Once again you will get an approbation screen with higher fees than the approve action.
Once you approved the deposit, you will see the deposited amount of tokens in the vault.
Congratulations ! You are now staking SXP!
Your rewards/tokens will be automatically added to the stake (principe of APY compared to APR) everyday.
To get back your tokens, simply click on withdraw all.
Bonus:
Track your earnings with yieldwatch.net.
Open the Browser/DApps tab and find YieldWatch. Copy your BEP20 address(Smart Chain) of your wallet and contemplate your vaults and pools !
You can also do this tutorial from computer, the only thing that will change if that the connection to beefy. Connect your Trust Wallet to Beefy with Wallet Connect.
