How to stake on PancakeSwap with Trust Wallet 2022

If you are looking to invest in cryptocurrencies or get involved in cryptocurrency trading, you may have heard about PancakeSwap. This decentralized exchange has been gaining attention for its user-friendly features and community-driven approach. Launched in 2020, PancakeSwap Exchange has been experiencing steady growth. It is one of the popular decentralized exchanges (DEX) on the Binance Smart Chain (BSC).

In this article, we will be learning about PancakeSwap and how staking works on it.

What are PancakeSwap, staking, and Trust Wallet?

PancakeSwap is a decentralized exchange that runs on the Binance Smart Chain network. It allows you to trade cryptocurrency tokens, earn liquidity mining rewards, and stake tokens for passive income.

PancakeSwap is one of the most popular decentralized exchanges (DEXs) in the decentralized finance (DeFi) space. It allows users to exchange tokens on Binance Smart Chain with low fees and fast transactions.

Staking is the process of locking your digital assets like CAKE, BNB, and other tokens to earn interest. This process helps to secure the network, and in return, you, as a network validator or stakeholder, receive rewards. The amount of rewards you receive depends on how much you have staked and how long (time).

Staking is a great way to multiply your cryptocurrency holdings. Since it is a means of generating passive income, you will earn interest while simply holding your crypto assets. Be aware that staked assets are locked until the unstake period is reached.

Trust Wallet, the official crypto wallet of Binance (one of the world’s largest cryptocurrency exchanges), is a mobile wallet app that allows you to send, receive, store, and even stake a wide variety of cryptocurrencies while offering a user-friendly interface that will enable you to interact with different blockchains easily.

Trust Wallet also features a Web3 browser that allows you to interact with decentralized applications (DApps) directly from the app. You can use Trust Wallet as a wallet for your tokens and earn crypto or participate in token sales (IDOs).

How does staking work on PancakeSwap?

Staking crypto is a big part of the PancakeSwap ecosystem that can increase your returns on the platform. However, it can be confusing and complex for new users. This article will guide you on  everything you need to know about crypto staking on PancakeSwap with Trust Wallet.

PancakeSwap has two options of staking available on it. The first one is by staking Liquidity Provider (LP) tokens in farms, and the second is by staking BEP-20 tokens in syrup pools.

Liquidity Provider (LP) tokens staking in PancakeSwap farm

Liquidity pools are pools of assets that help ease the buying and selling of tokens. Liquidity providers (LPs) contribute cryptocurrency to this liquidity pool and get rewarded in proportion to what was put in. They receive liquidity provider tokens as proof that will be returned to reclaim the assets originally provided as liquidity.

Liquidity provider tokens represent the liquidity provider’s contribution to the pool, and liquidity providers can then stake their allocated LP tokens on the PancakeSwap farm to earn yield from transaction fees.

You need to understand LP tokens because they are a pair of two different cryptocurrencies put in equal quantity.

 Syrup Pools staking of BEP-20 tokens

PancakeSwap syrup pools are the easiest option for staking and earning on PancakeSwap. It does not require LP tokens; therefore, you only need to stake one kind of token to start earning. 

Most pools let you stake CAKE (PancakeSwap’s native token) to earn CAKE or other tokens, but special pools allow you to stake or earn other tokens. After the tokens have been staked for some time, you can harvest these rewards directly or by withdrawing the stake entirely. 

Currently, there is only a flexible staking option on syrup pools as the locked staking option is yet to start functioning. Flexible staking implies that you can unstake your assets anytime.

To use PancakeSwap, you need to use a wallet connected to the Binance Smart Chain because PancakeSwap is a decentralized application ( DAPP)that is not supported by browsers like chrome. Examples of crypto wallets that support PancakeSwap are MetaMask, Trust Wallet, TokenPocket, MathWallet, WalletConnect, Binance Chain Wallet, and SafePal wallet. For this guide, we will be using Trust Wallet.

How do I stake in PancakeSwap using Trust Wallet?

Now you have decided to stake your crypto asset in PancakeSwap using Trust Wallet, but you don’t know how to start. Relax! In this section, you will be held by hand as we go through connecting your Trust Wallet to PancakeSwap; then, we look at how to stake in the syrup pools before moving on to the option of staking in farms.

Connecting PancakeSwap to Trust Wallet

  1. Open your Trust Wallet app. Download it and create an account at this point if you haven’t already.
  2. Click on the DApp Browser button on the bottom toolbar
  3. In the address bar, type in ‘pancakeswap.finance’ and click to search
  4. Because it is your first time doing this, you will get a message saying, “This site wants to connect to your wallet” click Connect
  5. You will see the PancakeSwap homepage on your phone; click Connect Wallet
  6. The next screen will say, “Connected to (your wallet name).”

Staking In syrup pools: step by step guide

  1. Open your Trust Wallet app and ensure you have some BNB in your wallet at this point for the gas fees 
  2. Click on the DApp Browser button on the bottom toolbar
  3. Navigate to Exchanges and select PancakeSwap or search for Pancakeswap.finance in the search bar
  4. After the exchange connects to your wallet, it will bring up the homepage 
  5. Click on Earn in the bottom toolbar and select Pools
  6. Go through the list of available pools and make a choice
  7. Proceed to your chosen pool and click on Enable. Here I decided on the pool to stake CAKE to earn GMT.
  8. It will charge you a gas fee to enable it. Click approve
  9. Proceed to click on Stake 
  10. A page will come up where you need to select the quantity of coin you want to stake
  11. Click on confirm and proceed to approve the staking transaction 
  12. Sit back and start earning. Congratulations, you did it!

How to add liquidity on PancakeSwap and stake the liquidity tokens in the farm.

Just like staking, providing liquidity is one way to generate income while holding your crypto assets. When you add/provide liquidity in PancakeSwap, you earn part of the transaction fees charged to those that trade on the exchange. 

Before you provide liquidity, you must understand that risks are involved, such as the risk of impermanent loss. Impermanent loss occurs at the end of a liquidity pool when you realize that the total crypto asset value withdrawn is lower than the deposited value. This impermanent loss is a result of the price drop.

Adding liquidity in PancakeSwap 

Step 1. Open the liquidity page

To provide liquidity in PancakeSwap, the first thing to do is open the exchange and click on Trade in the bottom toolbar bar. Click Liquidity on top

Step 2. Select tokens to add as liquidity 

After clicking on add liquidity, proceed to select the two cryptocurrencies you want to pair. Recall that you need to deposit an equal amount of two different cryptocurrencies when adding liquidity. Because we want to stake our LP tokens, note that not all LP tokens can be staked. Ensure to check the current pools under Farms before choosing.

Step 3. Deposit liquidity on PancakeSwap

After selecting the pair to deposit, click on Supply. A page will pop up to show a summary of your deposit and how many LP tokens you will receive, go ahead and click Confirm Supply. You will need to confirm the transaction from your wallet. You will get a notification from PancakeSwap and TrustWallet that the smart contract transaction has been executed.

Congrats! You have done it successfully and should now see the provided liquidity on the Liquidity page.

Staking LP tokens in PancakeSwap farm 

So you provided liquidity, and your LP tokens have a pool under Farms. Do you wish to stake them there to generate additional rewards from your crypto? Let’s do it

  1. Navigate to the PancakeSwap exchange and click on Earn in the bottom toolbar
  2. Select Farms and click on the pair you have LP tokens on 
  3. Click on Enable. It will charge you a gas fee; click Approve
  4. Proceed to click on Stake 
  5. A page will come up where you need to select the quantity of LP tokens you want to stake, do that
  6. Click on confirm and proceed to approve the staking transaction 
  7. Start earning 

So, hopefully, this article provided enough information to successfully stake in PancakeSwap on your Android device with the Trust Wallet app. As always, be sure to leave any questions below, and we will be sure to answer them as soon as possible.

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