How to Stake CAKE on PancakeSwap
Staking is one of the best ways to earn passive incomes from centralized and decentralized environments.
In the case of PancakeSwap, CAKE staking has become one of the most popular activities in the crypto community.
Staking CAKE in the DeFi space that the PancakeSwap exchange offers seems like a smart decision.
Of course, there are other ways to earn CAKE tokens, such as farming.
But today, we are going to show you everything you need to know about getting CAKE staked on PancakeSwap.
Keep on reading today’s blog post to get more information about:
- How to stake CAKE on PancakeSwap;
- Things you need to know before staking more CAKE on this platform;
- Deciding how much CAKE you want to stake.
PancakeSwap and CAKE Tokens
PancakeSwap is a decentralized exchange that can be used for swapping, trading, and staking tokens on the Binance Smart Chain.
The Automated Market Maker model implemented by the exchange provides the opportunity for users to become liquidity providers.
There are various ways to provide liquidity on PancakeSwap.
One of them is by staking LP tokens, also called FLIP tokens, or providing liquidity pair on the farm section.
PancakeSwap CAKE Staking Explained
The CAKE token is earned by becoming a liquidity provider on the liquidity pools.
Staking is a common practice in other cryptocurrency exchanges, and the users that add liquidity earn a direct reward depending on the staked amount.
How Pancakeswap staking works:
- Cake holders decide to earn tokens through staking;
- By staking CAKE tokens, the users provide liquidity to the network;
- Becoming a liquidity provider translated into getting staking rewards in the form of additional tokens (CAKE).
Staking LP tokens or FLIP tokens on a liquidity pool also works for providing liquidity to a specific pool.
In this case, users earn LP tokens and a portion of the trading fees generated on the platform.
Read Also: Before staking LP tokens or CAKE tokens, you must take many factors into account.
For instance, impermanent loss, emission rate, gas fees, and minimum withdrawal amount must be part of your previous research.
Learn more about each transaction you can make on PancakeSwap by reading our How to Use PancakeSwap guide.
How to Stake CAKE on PancakeSwap
The main requirement to stake CAKE (and overall LP tokens) on PancakeSwap is to have a Binance Chain Wallet on your mobile device.
Since PancakeSwap operates on the Binance Smart Chain, it’s fundamental to have a connected wallet that runs on this network.
And, since the trading fees and network fees are ruled on by BNB, we highly recommend having Trust Wallet installed beforehand.
Pro Tip: If you get a message that says “ PancakeSwap: No Provider Was Found,” it means that your wallet was unable to connect to the DApp browser for any transaction.
Learn how to solve this matter by reading our related blog post.
Step 1: Connect Trust Wallet to PancakeSwap
Firstly, get Trust Wallet connected to PancakeSwap.
Remember that each token available on PancakeSwap lives on decentralized spaces, so you need to use a decentralized, non-custodial wallet as well.
Learn how to Connect Trust Wallet to PancakeSwap by reading this blog post.
You Can Also Connect MetaMask Wallet
In case you are a MetaMask user, then Connect MetaMask to PancakeSwap instead.
Nevertheless, you must first enable the Binance Smart Chain.
Since having a Binance Chain wallet is fundamental, and MetaMask natively runs on the Ethereum Network, this is a fundamental step in order to stake CAKE token.
Don’t wait any longer and learn how to Add Binance Smart Chain to MetaMask here.
Step 2: Access the PancakeSwap Platform
Once your wallet and the DApp browser are connected and ready to go, open PancakeSwap.
On the left menu of the app, you will find the “Pool” option.
A liquidity pool is the place where you stake CAKE tokens.
A CAKE pool provides the required liquidity by having users staking CAKE inside the platform.
Note: If you are having some doubts about liquidity pools, CAKE pool, and more, we recommend you visit the official PancakeSwap Website.
There, you will find the information you need about pools and staking tokens in them.
Step 3: Go to the Cake Pool (Liquidity Pool)
Select the “CAKE Pool” and tap where it says “Approve Cake.” The platform will ask you the amount of CAKE tokens that you want to stake.
Tap on the “plus (+)” icon and proceed.
Step 4: Enter the Amount of CAKE You Want to Stake
If you want to stake all your CAKE tokens, then tap on “Max.”
Otherwise, just type in the amount of CAKE tokens you want to stake.
The more tokens, the better the rewards will be.
After you are done with the pools’ requirements, tap on “Confirm,” and you will be good to go.
Step 5: Stake CAKE Tokens and Get PancakeSwap Staking Rewards!
Remember that most coins on the DeFi and crypto space tend to be very volatile.
As a consequence, each reward you receive from staked tokens might vary a lot.
Check out this tokens PancakeSwap Reward Calculator so you can estimate your earnings before they take place.
That’s all for today! Staking CAKE tokens is an excellent way to earn a steady income from PancakeSwap, but make sure you know what you are doing.
For more PancakeSwap content, check out GrowFollowing on a daily basis.
Pancakeswap Staking FAQ
Is Staking CAKE on Pancake Swap Safe?
As it happens with all tokens out there, CAKE might experience fluctuations in its price without further notice.
Always do your own research before deciding to invest your money somewhere.
What is the Syrup Token?
The Syrup token used to be the governance coin on Pancake Swap.
Syrup pools do not exist anymore because the platform decided to remove their support, so users can’t receive Syrup as rewards.
Learn more about what happened here: PancakeSwap and Syrup.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.