Ah yes pancakes! Soft, sweet, and delicious. Enjoying a fluffy stack of pancakes has become even more enjoyable.
No we’re not going to IHOP Brian. We’re going to head over and check out PancakeSwap!
Now don’t go reaching for your syrup and fork just yet, because PancakeSwap doesn’t serve up actual pancakes. They’re servin’ up some sweet liquidity pools.
Unlike regular pancakes, PancakeSwap’s liquidity pools will grow your crypto and not your waistline! And thanks to the Binance Smart Chain, anyone can become a liquidity provider on PancakeSwap!
PancakeSwap is for swapping BEP-20 tokens, but you can use bridge sections to provide liquidity for ERC-20 and TRC-20 tokens as well. In addition, it may benefit you to understand more about “impermanent loss” before adding liquidity to a pool.
Let’s get started with learning how to provide liquidity on PancakeSwap. If you’ve provided liquidity on decentralized exchanges (DEXs) before then you’ll probably see it’s quite a similar process.
Note: Since the wallet in this example hasn’t been connected, you only will see the “Unlock Wallet” button in the last step. Ideally, once the wallet is connected you’ll no longer see this button.
- Visit the PancakeSwap website. Make sure you are visiting the official site and not a scam domain! Always double-check to make sure.
- On the top right corner, there is a “Connect” button. By clicking it, you will be able to connect your wallet to PancakeSwap. You may also click the “Unlock Wallet” button to connect as well. PancakeSwap offers a variety of compatible wallet providers.
- Then make sure you click the “Liquidity” button to start providing liquidity to PancakeSwap. You can choose it on the left side-bar or directly on the main page in the center.
- After the above step, you need to click the “Add Liquidity” button to choose which coins you want to provide to pools. There are plenty of options here!
- You need to select two coins/tokens to deposit into the pool. Finally, confirm the token pair to deposit them and add the liquidity.
Congrats! You’re now officially a liquidity provider! Now you can enjoy your fluffy liquidity pool gains.
Are you salivating to start providing liquidity on PancakeSwap? Tell us in the comments!
And now a meme from our community…