Plans and strategies you have to know before entering the ApeSwap project

ApeSwap is a Yield Farming, and Staking platform running on Binance Smart Chain, with lots of other features that let you earn and win tokens. Below, I try to give you some insights into ApeSwap so that it makes it convenient to invest in the best Platform.

What is Yield Farming of ApeSwap

Yield farming is the practice of staking or locking up cryptocurrencies to generate rewards. Much decentralized finance (DeFi) projects rely on yield farming to incentivize users to contribute to the network's liquidity and stability since these projects do not rely on a centralized market facilitator.

How do you farm?

To farm, you first have to provide liquidity to one of the liquidity pools which you can find on the "Farms" page. After you add liquidity to a liquidity pool, you will receive a liquidity pool token, commonly referred to as LP tokens, or in ApeSwap's case, and APE-LP.
After providing liquidity and receiving your LP tokens, select the liquidity pool you joined from the "Farms" page, approve the contract and then click on the little "+" sign, choose the amount you want to stake, and confirm.

Introducing Liquidity Pools

Liquidity pools are one of the foundational technologies behind the current DeFi ecosystem. They are an essential part of automated market makers (AMM), borrow-lend protocols, yield farming, synthetic assets, on-chain insurance, blockchain gaming – the list goes on. A liquidity pool is a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending, and many more functions we’ll explore later.

About ApeSwap's Liquidity Pools

ApeSwap liquidity pools allow you to provide liquidity by adding your tokens to liquidity pools or “LPs”. When you add your token to a liquidity pool (LP), you will receive APE-LP tokens (ApeSwap’s version of liquidity provider tokens).
As an example, if you deposited Banana and Bnb into a liquidity pool, you would receive banana-BnB ape-lp tokens. The number of APE-LP tokens you receive represents your portion of the BANANA-BNB liquidity pool. You can also redeem your funds at any time by removing your liquidity.

The Benefits of Providing Liquidity

It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees. Whenever someone trades on ApeSwap, they pay a 0.3% fee, of which 0.25% is added back to the liquidity pool of the swap pair they traded on. Additionally, you can earn juicy APYs from taking your LP tokens and using them to earn Banana in our farms.

For example:

● 10 APE-LP tokens are representing 10 Banana and 10 BNB tokens.
● 1 APE-LP token = 1 Banana + 1 BNB
● Someone trades 10 Banana for 10 BNB.
● Someone else trades 10 BNB for 10 Banana.
● The Banana/BNB Liquidity Pool Now Has 10.017 Banana And 10.017 BNB.
● Each APE-LP token is now worth 1.00017 BANANA + 1.00017 BNB.
To make being a liquidity provider even more worthwhile, you can also put your APE-LP tokens to work in ApeSwap Banana farms (here), while still earning your 0.25% trading fee reward.

Banana's primary function is to incentivize providing liquidity to the exchange. Without block rewards, there would be much less of an incentive to provide liquidity (LP fees, etc. would remain). Hope this can help you to understand the benefits of ApeSwap as above-mentioned above.

Website: https://apeswap.finance/
Channel : https://t.me/ape_swap_news
Medium : https://ape-swap.medium.com/
Github : https://github.com/ApeSwapFinance

Author:
BTT Username: oscarclows
BTT Profile: https://bitcointalk.org/index.php?action=profile;u=1769225
BEP 20 Wallet: 0xD01D015CCe1c272a28844D1DfB48181E7De56384