STEP BY STEP GUIDE ON HOW TO ADD LIQUIDITY ON PANCAKESWAP
Do you know that you may make passive income using the unused cryptocurrency in your wallet?
The cryptosphere is enormous, and there are many methods to monetize your idle assets. Today, I'll go over two common strategies for generating income from your underutilized assets: offering liquidity and farming. In the cryptographic system, these two techniques are among the most widely used.
Let me quickly explain what liquidity actually is first. The ability to rapidly and fairly convert an asset into cash is how liquidity is typically characterized. The degree to which an asset can be purchased or sold without having an impact on its price is referred to as liquidity. By adding assets to the pool and providing liquidity, you can receive passive income at an annual percentage rate (APR) or annual percentage yield (APY), depending on the asset. Instead of allowing the asset to sit idle inside the wallet, a person can easily add their unused assets to the liquidity pool and earn some money in return.I'll use PancakeSwap, one of the DEXs built on the Binance smart chain, to demonstrate how to add liquidity. The platform provides some DeFi services.
You will require two separate assets, and you will be producing liquidity at a 50% by 50% ratio for both assets, in order to add liquidity.
I'll be using two distinct assets, BNB and BUSD.
Start by opening trustwallet and clicking on DApps. Then click pancake swap.
| DApps | Pancakeswap |
|---|---|
 |  |
Click on liquidity then scroll a little and click on add liquidity
| Liquidity | Add liquidity |
|---|---|
 |  |
Choose the pair you wish to be using. In this case it's BNB-BUSD. Approve amount and then click on Supply.
| Approve | Supply |
|---|---|
 |  |
Finally, confirm transaction by clicking on approve supply, then the assets will be successfully supplied as liquidity.
| Confirm liquidity | Liquidity confirmed |
|---|---|
 |  |
The cryptocurrency market is vast, and there are many ways for a user to optimize earnings by using an underutilized asset. With the aid of DeFi, also known as the Decentralized Finance System, users can easily use one of its services, such as farming and offering liquidity. Anyone, regardless of their geography or political gender, can use services like this. I sincerely hope you learned something, and thank you for the kind thoughts.
https://twitter.com/EbullientSrr/status/1576654205468778496?s=19
A lovely tutorial for crypto enthusiast that intend to stake their unused tokens to earn passive income.
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