Staking on Pancakeswap is similar to normal crypto staking. If you are looking for how to stake CAKE on Pancakeswap, keep in mind that it is not much different from your usual crypto staking. 

Staking is a good way to earn crypto rewards while doing other activities.

Users of pancakeswap can stake CAKE and earn a reward of a 1:1 syrup pool. You can decide to do flexible or fixed staking. You will decide the one that is most suitable for you.

To start staking on Pancakeswap, you don't need to be an expert, as the steps are quite straightforward.

This article will show you How to Stake Cake on Pancakeswap and everything you need to know.

What is Pancakeswap?

Pancakeswap is a decentralized exchange native to Binance smart chain, an alternative to Ethereum.

Pancakeswap provides various decentralized finance farming opportunities for their liquidity providers.

Users of Pancake swap can swap different cryptocurrency assets when they tap into user-generated liquidity pools.

Pancakseswap also enables staking. Users of pancakeswap can stake CAKE (the native BEP-20 token on pancakeswap). The reward for CAKE staking is a 1:1 ratio of syrup. With the Syrup, you are entitled to 25% of the CAKE emissions that will be shared equally with all holders.

How to Stake Cake on Pancakeswap?

On Pancakeswap, you can get a $CAKE each time you provide liquidity or through the lottery. You can also get $CAKE from staking.

This is how to stake on pancakeswap

First step

First, you must ensure that you have $CAKE tokens on MetaMask and Trust Wallet or any cryptocurrency wallet that supports Pancake swap. Also, for you to be able to use your token on pancakeswap, you have to be able to transfer your token from Binance to your Binance Smart Chain Address (BEP20). In that way, you can use and trade them on Pancakeswap.

Also, trades and swaps attract network fees, so ensure that you have BNB in your wallet. For Binance, the minimum withdrawal is 0.1BNB which will make up for other rounds of fees.

After these confirmations, you must connect your wallet to PancakeSwap DApp. Here you can trade your BEP20 tokens (BNB, BUSD, BTC) for $CAKE.

Second Step

PancakeSwap Network

At this stage, you will have to gain access to the pancakeswap network. To do this:

• Scroll to the "Pools" tab. You will see the available liquidity pools on the platform.

• Find the CAKE liquidity pool.

• Tap on Enable button. From there, you can stake your CAKE to gain additional Pancakeswap tokens.

Third Step

This is the final step. All you need to do is to select the CAKE liquidity pool from the list and join it. You can decide to reinvest your tokens. To do this, scroll to the bottom left and click the Auto/Manual button. If you want to harvest and stake your tokens automatically, set it to 'Auto".

Is it good to stake in PancakeSwap?

Pancake swap gives 2 staking options, flexible staking or fixed-term staking. Both staking options are in the same pool, allowing users to migrate between the options. This means that you can only choose one option at a time.

Flexible staking -

When you use the flexible staking option, your cake will be reinvested for you. When you use the Flexible staking option, you can:

• Harvest your staking reward any time you want

• Add CAKE tokens to the flexible staking

• You can decide to convert the CAKE you staked in flexible staking to fixed-term staking.

• Withdraw your CAKE anytime you wish, but the first three days attract a withdrawal fee. The 0.1% fee is applicable in manual staking; it is not the same in automatic staking. After the first 72 hours (3 days), you can unstake without a fee.

Flexible staking also attracts performance fees. From every yield harvested, a 2% fee will be subtracted.

The CAKE collected from the performance and unstaking fees will be burned weekly. It will be added to the regular token burns. CAKE holders benefit by reducing the number of CAKE tokens. This reduction is a good way to reduce inflation.

Fixed Term Staking

In this type of staking, you will Stake your CAKE for a fixed time to increase yields and get extra benefits. In fixed-term staking;

• There are no performance fees.

• Your boost or reward is proportional to the period you locked your asset. You will get a greater boost if you lock in for a long period.

• During the period of staking, your CAKE rewards are auto-compound. When the staking period expires, the rewards and your staked CAKE will unlock.

• You can not withdraw your CAKE until the end of the fixed-term duration

How do you stake a CAKE in Trust wallet?

To stake cake in Trust wallet, you need to transfer your tokens to Trust wallet and decide how much you want to stake. Here are some step-by-step guides:

1. The first thing you will do is buy some Cake tokens from your trust wallet. You can decide to exchange your CAKE by buying BNB from Binance. Then you can transfer them to your Trust Wallet.

2. When the Cake is on your Trust Wallet, find the bottom DApp tab and click on it.

3. Scroll down and find staking

4. Then click on Pancakeswap.

5. At this point, if you already have BNB, you have to exchange them with your CAKE.

6. Alternatively, if your CAKE is sufficient, you can click on "EARN'. You will find it in the tab for the footer menu.

7. Once you click on Earn, you will be redirected to the pool and farm staking. Presently, CAKE Pools staking offers 60% manual stake and 77.5% auto. Farm staking offers up to 40% staking. Also, cake staking is offered up to 87%RPG.

How much can you make staking pancake?

If you are a user of Pancakeswap and provide liquidity, you will be rewarded with LP tokens. With the liquidity pool on the DEX, users can carry out instant swaps of BEP20 tokens.

However, to earn the maximum amount when staking CAKE, check the "Farms" tab, and see the best liquidity pool you can use for farming cake.

The amount you can make from staking CAKE depends on the pool and the amount of CAKE you staked.

The various pools have varying performance feed and compound rates. You must confirm their APY and APR rates to get the highest return on investment.

How long you staked CAKE and the amount you will stake determines how much CAKE you will make from staking. You have the option of choosing how long you would like to stake your CAKE. You can decide to stake your tokens for 1 day, 7 days, 30 days, 1 year, and 5 years. After staking, you can leave the token as long as you want, but if you decide to withdraw in your first three days, you will have to pay an unstacking fee.

Also, consider your APR and impermanent loss factor when staking your coins. You can use the ROI calculator that comes with each farm to get an estimation of the liquidity pool.

What is Crypto staking?

Crypto staking is committing your crypto assets in support of a blockchain network. It is an additional way of earning passive income with your crypto assets.

Cryptocurrencies that offer the proof of stake network enable their users to stake their assets. Before the proof of stake method was invented, most cryptocurrencies used the proof of work model. However, proof of work is energy-consuming compared to proof of stake.

In proof of work, mining devices that use computing power are used to handle mathematical equations. This was energy and time-consuming.

Proof of stake is a good alternative to this energy and cost-consuming issue faced by proof of work.

How does Pancakeswap work?

Pancakeswap is a decentralized exchange native to the Binance smart chain. Pancakeeswap uses the Automated market maker (AMM) model, where traders can trade digital assets using permissionless liquidity pools. This differs from the traditional market model that requires a buyer and a seller.

In the AMM model of Pancakeswap, users deposit their funds in the liquidity pool and receive a liquidity provider token in return. Also, when you make your asset available for lending, you will receive a fee.

You will pay a fee if you want to use the liquidity on the pancake swap. Later, the fees will be distributed among all those who contributed to the pool. Some part of the fee will be kept for the running and maintenance of the Defi.

With the Automated market maker model in Pancakeswap, you can earn when you create liquidity for the pool. The higher your contribution, the higher your returns.

You can also farm your LP tokens in a different liquidity pool to earn Pancakeswaps CAKE (native Bep 20 tokens). There is another pool called the syrup pool, which is more rewarding. You can stake your CAKE tokens to earn more rewards from the syrup pools.

Uses of Pancakeswap

Once you have your token in Pancakeswap, there are different ways you can make a profit from Pancakeswap.

Farming

Farming on Pancakeswap is a good way to earn large profits. You can decide to farm the LP token you earned previously in the Pancakeswap platform and receive CAKE in return (CAKE is the governance token of pancakeswap).

Consider farming a long-term investment where you can lock your money and receive rewards. Farming here refers to the period where you are waiting for your CAKE rewards; then harvesting is when you start gaining your rewards.

Farming remains one of the highest profitable ways to earn on Pancakeswap. To start farming, scroll to the Sidebar and locate the Farms tab.

Trading

The trading on Pancakeswap is similar to the usual crypto trading. As a decentralized exchange, it supports the trading of its Bep-20 tokens. Liquidity providers that enable trading for other BEP tokens will receive LP tokens.

The trading experience on Pancakeswap is usually smooth because the exchange was built for speed and security.

Staking

You can stake CAKE in the syrup pools of Pancakeswap, which will enable you to earn more rewards. Not everyone can trade on Pancakeswap and earn a profit because trading requires some expertise. But anyone can stake with zero expertise and earn massive rewards.

Pancakeswap has modified its staking rewards. This means that you not only get CAKE rewards, but you can also get other BEP token options.

Like other staking protocols, staking in pancakeswap requires you to lock up your investment for a fixed amount of time. After a while, you will earn your rewards.

Lottery

This is the fun part of earning on Pancakeswap. Pancakeswap runs four lotteries in a day. Each lottery session lasts six hours, and you must buy a ticket to participate.

When you win any lotteries, you can receive an NFT reward.

Pottery is another type of lottery pool in Pancakeswap. To participate in Pottery, you will have to deposit your CAKE for up to 10 weeks and stand a chance to win.

NFT 

Pancakeswap enables users to win special NFTs. You can decide to walk away with your NFT, or use it for trading or staking on Pancakeswap.

Generating NFTs is simpler than it used to be, owing to the recent scientific protocol developed by Binance.

Take Away

Staking on pancakeswap is similar to the usual crypto staking. Pancakeswap introduced staking to enable users to earn additional rewards with their tokens.

Asides from staking, there are other ways you can earn rewards from Pancakeswap. Some of the ways include trading, farming, lottery, and NFT.

For staking, you need to carefully follow the procedures listed in this article to avoid errors.

Pancakeswap is one of the decentralized exchanges that offer the proof of stake mechanism. If you will stake your tokens and earn rewards, you should be well grounded on everything you need to know, and this article provided all that and more.