(Farming)
🌱 Agriculture and the Earn section on the Binance platform: A comprehensive guide
The Binance platform is not limited to trading only; it offers a range of passive income tools through the Earn section, which allows you to invest your digital currencies to gain additional returns without the need to sell them. The most important of these tools are Yield Farming and Staking, as well as Flexible & Locked Savings.
🌿What is the Earn section?
The Binance Earn section is a dedicated space for users who want to generate passive income from their digital assets (profit from staking). It includes several products:
- Simple Earn: A product that offers flexible or locked returns.
- Launchpool: Farming new tokens by depositing BNB or BUSD.
- Liquidity Farming: Providing liquidity to trading pools in exchange for rewards.
- Staking: Storing tokens to help secure the network in exchange for returns.
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🌾 Yield Farming on Binance
✅ Definition
Farming means depositing your tokens in liquidity pools or DeFi protocols in exchange for periodic rewards.
⚙️ How it works
1. Choose a currency pair (like BNB/USDT).
2. Deposit tokens in the liquidity pool.
3. You earn rewards from trading fees + additional tokens (like CAKE or ALPACA).
📌 Examples of farming protocols
- PancakeSwap (CAKE): The most popular farming protocol on the BSC network.
- Venus (XVS): A lending protocol that offers rewards to depositors.
- Alpaca Finance (ALPACA): Allows farming with leverage.
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💸 Simple Earn: Flexible and locked storage
👈 Examples of returns
- USDC: 4.91% annually
- USDT: 6.51% annually
- STO: 6.89% annually
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The risks to be aware of 🤔😲
- Impermanent Loss in farming.
- Market fluctuations affect returns.
- Risks of smart contracts in external protocols.
How to get started?
1. Open the Binance app.
2. Go to the Earn section.
3. Choose the right product (Simple Earn, Launchpool, Farming).
4. Click subscribe and agree to the terms.
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Tips for traders
- Use stablecoins to reduce risks.
- Monitor annual returns and their changes 🧐.
- Do not put all your capital in one product.
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📌 Summary: The Earn section on Binance is an excellent opportunity to generate passive income, but it requires a precise understanding of the products and risks. Farming is suitable for users looking for higher rewards, while flexible storage suits those wanting greater flexibility.
