In the ever-evolving landscape of decentralized finance (DeFi), a groundbreaking concept is making waves – isolated pools. To truly understand the significance and potential of isolated pools, we must first delve into the nature of common pools that currently dominate the DeFi lending market.

The Limitations of Common Pools

Capital Efficiency vs. Risk Exposure Many lending markets operate on a common collateral pool model. In this model, all assets are deposited into a single liquidity pool, which the protocol can then use to make loans to others. While this model offers capital efficiency, it exposes all assets in the pool to the risk associated with a single asset's failure. This limits the choice of assets to relatively low-risk options like Bitcoin, Ethereum, or Binance coin, leaving few options for users interested in newer or riskier assets.

Introducing Isolated Pools

Empowering Users with Choice Imagine a DeFi environment where lenders and borrowers are not constrained by the risk profile of a common pool. This is where isolated pools come into play. In this independent lending environment, separate from the main protocol pool, users can choose which pools to participate in based on their personal risk preferences. More conservative users can stick to the main protocol pool, while those willing to engage in lending riskier assets can participate in isolated lending pools.

Why BNBx Isolated Pools Are Needed

In the traditional common pool approach, users might be hesitant to lend BNBx if it's deemed too risky compared to other assets in the pool. However, with the introduction of isolated pools, BNBx has its own dedicated lending pool. Users can now choose to participate in this BNBx isolated pool based on their risk appetite.

Unlocking Flexibility and Growth with Isolated Pools

Expanding Use Cases Isolated pools, like those for BNBx, unlock a new level of flexibility and potential for growth in liquid staking. They enable users to take loans by offering any BNB Chain tokens, including BNBx, as collateral. When launched, protocols like Venus will provide their securities to this private borrow/lending pool, paving the way for previously non-existent use cases for some assets.

The BNBx Supply Strategy

A Step-by-Step Guide Now that we understand the significance of BNBx isolated pools, let's explore how to supply BNBx on Venus Protocol and reap DeFi rewards.

Step1: Stake BNB on Stader & mint BNBx  🔗https://www.staderlabs.com/bnb/stake/

Step 2: Visit Venus Protocol Start by visiting https://app.venus.io. This will take you to the homepage of one of the leading decentralized money markets on Binance Smart Chain.

Explore Isolated Pools After successfully connecting your wallet, head over to the 'Isolated Pools' section.

Step 3: Supply BNBx Click 'Supply' and input the amount of BNBx you want to supply. Make sure to approve the wallet transaction to complete the process.

Conclusion:

Voilà! You've successfully tapped into the world of BNBx isolated pools on Venus Protocol. Sit back, relax, and watch your BNB holdings prosper like never before. The era of smart investing with Stader and Venus Protocol has arrived!

The team at Stader introduced and popularized the concept of a liquid restaked token (LRT). At its core, an LRT is a liquid token that offers liquidity to illiquid assets deposited into restaking platforms, such as EigenLayer. rsETH is already live on testnet. As we continue to build this out, here’s a quick primer on the tech that powers it.

What is rsETH?

rsETH is a liquid restaked token that allows users to receive Ethereum staking and restaking rewards while retaining liquidity and the ability to participate in DeFi.

What is the tech behind rsETH?

The main modules that power rsETH are the deposit pool, node delegator, reward market and withdrawal manager contracts.

The deposit pool is a simple vault that allows restakers transfer their liquid staked tokens and issues rsETH tokens back based on the current exchange rate of rsETH.

The deposit pool further ensures delegation of these liquid staked assets from restakers into different operators working with the LRT DAO to act as economic security for AVS’ keen to build on Eigenlayer. In short, the deposit pool offers a simplified version of restaking for a restaker abstracting the complexity of rewards, validator delegation etc.

The node delegator module does the heavy lifting of moving the deposited liquid staked assets to contracts for each operator. Assets in each node delegator are delegated to one operator thereby providing the economic security of the delegated assets to all nodes that an operator chooses to operate for different AVS’. Node delegators also claim rewards, engage in prescribed strategies for different rewards thereby automating reward redemption process for restakers enabling major gas savings.

Reward market provides various strategies that different rewards can be engaged in. These decisions will be driven by DAO through governance. A reward market helps AVS’ avoid undesired token activity while helping restakers obtain better returns. The reward market will be the foundational layer for all rewards accrued through restaking.

Withdrawal Manager module helps rsETH holders convert their rsETH tokens into a share of all assets managed by the protocol. Redeemers can expect to receive a complex set of various rewards received by Node Delegators for delegating to operators subscribed to various AVS’.

A high level flowchart is provided in the illustration below.

rsETH security roadmap

Security is of the utmost importance to a fundamental DeFi primitive like an LRT.

rsETH rollout will happen in the following phases.

• Audits: rsETH will be rigorously audited by popular security auditors in the upcoming weeks.

• Testing: Prior to the mainnet launch, rsETH will face extensive testnet testing to bootstrap the ecosystem.

• Bounties: Inline with the security theme, whitehats can find our code to verify and review with potential to earn bounties for bugs.

What’s next?

In the coming weeks, we plan on sharing the following with the Ethereum community:

1. rsETH litepaper

2. rsETH roadmap

3. Stader’s LRT contract audit reports

4. Incentives for early liquid restakers

Conclusion

rsETH promises to unlock greater utility and capital efficiency to users. To never miss an update, sign up for our mailing list and be the first to know about exclusive incentives. All announcements are first made on the Stader Ethereum Twitter page. For any questions you might have, hop onto our Discord.

Until the next time, check rsETH out. Now live on testnet!

1. What is Polygon?

2. Why is Polygon growing?

3. Polygon to Ethereum: Ethereum’s Internet of blockchains

4. How to use Polygon in Defi?

What is Polygon?

You may not have heard of Polygon, but you may have heard of MATIC network, a layer 2  designed to solve the scalability problems of layer 1 blockchains. You may be wondering, if you're not a blockchain expert, what is all this talk about layers and why networks are needed to solve scalability problems. To understand the importance of a network like Polygon, and its importance in the DeFi world, we have to understand what is known as the blockchain trilemma.

The blockchain trilemma states that when designing a blockchain, its base layer could only achieve 2 of the following 3 objectives: security, scalability and decentralization. For example, Ethereum's network is secure and decentralised, but not scalable. Ethereum was only capable of processing 18 TPS, therefore not being fast or scalable at all, yet it has a reputation for being secure and decentralized. How does Ethereum manage network congestion and gets to improve its scalability? By resorting to layer 2 networks. According to Vitalik Buterin, the way Ethereum 2.0 will get around the trilemma is by sharding — meaning creating new sidechains that run in parallel with the main blockchain, splitting the load. This lets it process more transactions — vastly more — without reducing the number of nodes or rushing the validation security process.

Well, since we know the importance of MATIC's scalable layer 2-solution, what does it have to do with Polygon? Simple, in February 2021, the team behind MATIC announced that MATIC would become Polygon, Ethereum's Internet of Blockchains. While MATIC was just a scaling solution, Polygon is a multi-chain system for collaborative blockchains that retain their independence.

Why is Polygon growing?

Before we get to analyse how to use Polygon in DeFi, we first need to know why everyone is talking about this protocol and what makes it so special. If we take a look to Polygon website, we can see how the protocol defines itself as a “decentralised Ethereum scaling platform that enables developers to build scalable user-friendly decentralized applications with low transaction fees without ever sacrificing on security”. Ethereum can only process a limited number of transactions per second (TPS), and the high load on the network requires of scalability solutions so as to not have delays in the decentralised network and high network fees. Polygon can process up to 7.2k transactions per second, which is a huge number of transactions! Ethereum can just process, as mentioned, 18 TPS. By acting as a Layer 2 protocol, Polygon doesn’t aim to duplicate Ethereum’s functionality. Instead, it helps improve transaction speeds and lower costs for developers.Think of it as an express train that runs parallel to a local train, moving faster with fewer station stops. Today Polygon is a unique protocol in the blockchain market providing a variety of different scaling mechanisms.

Developers have never found it so easy to build ETH compatible blockchains and connect them to the Ethereum network as with this framework.

Polygon provides to it users multiple benefits like:

-Ethereum-compatible blockchain

-Scalability

-Security

-Sovereignty

-Interoperability

-Better user/developer experience

Summing up this part, Polygon network has set a precedent in the crypto world, as it has helped to establish blockchains compatibility and interoperability so that protocols do not operate as closed communities but as part of an interconnected ecosystem. Popular decentralised finance platforms like Quickswap, Balancer, QiDAO, Aave and Superfluid are built on top of Polygon, which proofs how reliable, cheap and fast this blockchain is.

Polygon to Ethereum: Ethereum's Internet of Blockchains

Polygon is designed to facilitate a future where different blockchains no longer operate as stand-alone chains and proprietary communities, but instead as networks that fit into a broader interconnected landscape. Basically, Polygon is an interoperable blockchain.

Its long-term goal is to enable an open, borderless world in which users can seamlessly interact with decentralised products and services without first having to navigate through intermediaries or walled gardens. It aims to create a hub that different blockchains can easily plug into, while simultaneously overcoming some of their individual limitations—such as high fees, poor scalability, and limited security.

Polygon uses a variety of technologies to achieve this expanded vision, these include:

• POS Chain: Polygon's main chain is an Ethereum sidechain known as the Matic POS Chain, which adds a proof-of-stake (POS) security layer to blockchains launched on Polygon.

• Plasma Chains: Polygon makes use of a scaling technology known as Plasma to move assets between the root chain and child chains via Plasma bridge.

• ZK-rollups: An alternative scaling solution used to bundle a large number of transfers off-chain into a single transaction, using zero-knowledge proofs for the final public record on the Ethereum main chain.

• Optimistic rollups: A solution that runs on top of Ethereum to facilitate near-instant transactions through the use of "fraud proofs".

As you might have noticed, Polygon intends to incorporate more than one scaling solution, in keeping with its goal of minimising barriers to entry by attempting to reduce transaction fees to a bare minimum. By taking a multi-pronged approach to the issue of scaling, Polygon is hedging its bets, should any other scaling solution fail to accomplish its purpose.

Source: Bit2Me Academy

How to use Polygon in DeFi?

As have just been mentioned lots of protocols have migrated to the Polygon network. Polygon is a Proof of Stake Consensus Mechanism blockchain which native token is called MATIC, an ERC-20 token created on Ethereum blockchain. How can you use it to maximize your profit? Let’s briefly mention the basic strategies you can perform in DeFi. In DeFi you can…

-Provide liquidity to Decentralised Exchanges (DEX) liquidity pools and receive LP tokens in exchange: by providing a pair of tokens into a liquidity pool, the liquidity provider, also known as market maker, helps the protocol with decentralisation of trading. In exchange, liquidity providers are rewarded with fees generated by trades on the platform, which can be thought of as a form of passive income.

-Borrow tokens in a money market: Users can put their crypto assets to work as a collateral to get a loan in return for regular interest payments.

-Leverage farming: Users can borrow external liquidity to farm larger amounts of crypto, which means users have the option to increase their returns by a sizable amount.

-Stake native tokens: staking is a practice that only takes place in PoS protocols, and therefore, it is not present in Proof-of-Work blockchains like Bitcoin. Staking involves locking blockchain's native tokens for a certain period of time to get, in return, crypto rewards for contributing to the blockchain's speed and security. In this case, MATIC is the native token of a PoS chain, so you can also stake it and contribute to improve Polygon’s speed and security while generating Annual Percentage Yield as passive income. Let’s mention that an upgrade of staking is called liquid staking, that allows users to stake their favorite proof-of-stake coin while still having access to the funds, not being those “fully” locked as occurs in the case of staking per se. So, basically, in liquid staking protocols you lock up funds to earn staking rewards (same thing as Staking) but, at the same time, you can take part in attractive yield farming opportunities (here is where liquid staking makes the difference).

Since in the crypto industry LSD (Liquid Staking Derivates, like Stader, the home of Liquid Staking) are becoming more popular, then you can have the best of both worlds: staking and DeFi, so you can do things like leveraged yield farming in CIAN protocol or use the LSD in an options vault like Polysynth to increase your returns and maximize your strategy. The sky’s the limit but why not starting with staking MATIC tokens into MATICX so you can secure the network and get a ~6% APY? From there, add as many DeFi strategies and layers of rewards as you want! Unsure of how to proceed or overwhelmed by the options? Click here to see the utility provided by Stader to MATICX token.

Hope that train of thoughts helped you! Are you ready to stake MATIC to get MATICX and have the best of both worlds (staking and DeFi)? What are you waiting for?

Stader is a multi-chain, non-custodial liquid staking protocol on six chains, including Polygon, Fantom, BNB, NEAR, Hedera, and Terra 2.0. With over $120 Mn in TVL across chains, Stader is trusted by 70K+ wallets and a community of 150K+ members.

Stader’s mission is to unlock a passive income opportunity for 1Bn+ people through staking and DeFi. We aim to achieve this by simplifying staking & offering the best yield opportunities with our liquid staking solution across multiple blockchains.

ETHx (following Stader’s convention of an x-for-suffix for liquid tokens) is the liquid staking token for staked Ethereum offered by Stader. ETHx aims to provide Stakers with a decentralized and scalable solution with diverse DeFi integrations.

This blog series aims to give the reader an understanding of the inner workings of ETHx, covering the architecture through a series of posts outlined below

1. Node Operator onboarding

2. Deposit workflow

3. Rewards management

4. Oracle updates

5. ETH withdrawals

6. Security

In this blog post, we will explore the steps to ensure ETHx is operational and reliable. For added clarity, we split security into the following categories.

Code Security

1. Audits
   ETHx smart contracts have been audited by three renowned auditors: SigmaPrime, Halborn, and Code4rena. The audit reports are available here.

   - SigmaPrime has audited other liquid staking protocols like Rocketpool. They also maintain the Lighthouse consensus client. Sigma Prime is our end-to-end audit partner and has audited ETHx smart contracts, Stader Node, our offchain and Oracle code.

   - Halborn is a renowned cybersecurity firm that has audited many protocols, including Stader’s liquid tokens on other EVM and Rust-based blockchains. Halborn has audited the ETHx smart contracts, Oracle code and Stader Node.

   - Code4rena is a public security audit platform that crowdsources smart contract audits. They have worked with some of the top DeFi protocols on Ethereum. As part of this audit, we have worked with expert security researchers and incorporated their feedback into the smart contracts.

   With multiple rounds of expert audits, ETHx is one of the most thoroughly audited ETH liquid staking protocols.

2. Public testnets
   Stader has launched two public testnets to test out various components of ETHx– Node Onboarding, Stader Node, Deposits, Rewards, Exits and Oracles. Over 10 weeks, around 400 node operators and 600 validators tested different components of the ETHx codebase. We achieved 100% feature coverage as part of this testing, with test participants providing valuable feedback on improvements.

3. Stader testing
   Internally, the Stader team has extensively tested the entire tech stack over several months, covering all code flows. Our smart contract test coverage is 99%+ and is being improved actively.

   Furthermore,we ran end-to-end testing covering the complete tech stack on Goerli with 100s of validators. On mainnet, we deployed ~3000 ETH ($5.6M) and worked with several permissionless and permissioned operators to spin up ~70 validators to test the contract setup and ensure systems function properly.

4. Immunefi bug bounty
   Similar to Stader’s bug bounties for liquid tokens on other EVM chains, we are launching a $1M bug bounty program with Immunefi to identify critical bugs in the ETHx smart contracts. This bug bounty program will offer higher rewards than many other ETH liquid staking protocols to ensure that Stader is informed & fixes any identified bugs swiftly.

5. Upgradability and pausing
   Stader’s smart contracts are pausable and upgradable to protect against any bugs identified post-launch. In case of contract upgrades, the timelock contract assumes ownership of all deployed ETHx contracts. The timelock contract has a minimum proposal delay of 7 days, giving everyone ample time to verify the proposed changes. A 6-on-9 multi-sig acts as the sole proposer of the timelock contract. The signers for this multi-sig are prominent members of the Ethereum community.

Over the past few months, Stader has deliberately prioritized code safety by implementing all the above steps and working with reputed security experts to provide unbiased third-party reviews.

Economic Security

ETHx is a liquid staking protocol where stakers lend their ETH to earn staking rewards. Parallel to this, node operators put up 4 ETH and 0.4 ETH worth of SD tokens as security collateral to borrow staker ETH to run validators. Node operators are compensated for their capital and operational risk.
The 4 ETH security collateral protects the staker ETH by absorbing all operational risks. Let us discuss different aspects of protecting staked ETH.

1. Improper validator setup
   An operator can front-run the first deposit transaction to set a malicious withdraw credential to steal the 28 ETH lent to them. Stader solves this by checking if the validator’s appropriate withdraw credential is set before lending 28 ETH to a node operator. Moreover, if frontrunning is detected, a 3 ETH penalty is imposed on the operator with no loss to staker ETH.

   Similarly, a node operator can incorrectly sign the first deposit transaction. Like the frontrunning case, Stader ensures that a valid signature is provided before lending 28 ETH, avoiding losses for staker ETH.

2. Reward loss prevention
   The following penalties are levied on a validator to protect staker’s rewards:

   ****- ****1 ETH penalty for MEV misappropriation
   Stader has partnered with Rated Network to identify MEV misappropriation. Any time an ETHx validator proposes a block with a fee recipient different from Stader’s recommended address, an MEV misappropriation penalty is imposed.

   ****- ****DAO penalty for other loss of rewards
   The Stader DAO can add penalties for validators in the case of any other deviant behaviors causing significant loss of rewards to stakers.

   Preventing reward loss maximizes the rewards earned through staked ETH. With penalties compensating for downtime and MEV-theft, stakers can rest assured that their ETH will continue to earn top rewards despite node operator performance volatility.

3. Slashing loss protection
   A validator’s 4 ETH security collateral compensates for any loss of funds due to slashing or other ETH network-imposed penalties. When a validator exits, a node operator only gets any remaining collateral (a portion of the 4 ETH) after accounting for all of staker’s ETH and their rewards.

4. Node operational risk management
   An operator can run a validator with ETHx only after pre-recording an exit message that Stader securely stores. Stader broadcasts this pre-signed exit message to stop a validator from reaching dangerous penalty levels, thereby force-exiting a validator.

   A node operator with consistent signs of sub-optimal performance will eventually accumulate enough penalty. At that point, they are exited and their staked funds are recycled. Lost rewards or staked funds, if any, are compensated from the 4 ETH security collateral, making stakers whole.

5. ETH network degradation risk management
   A safe mode ensures fair penalty distribution between node operators and stakers under extreme network conditions. A Safe Mode disables withdrawals until the conditions stabilize. Once the network conditions return to normal, the DAO will disable safe mode and re-enable withdrawals. The monitoring manager imposes Safe Mode in two cases:

   - A percentage of all ETH validators are slashed, leading to unsafe correlation penalty levels. ETH network imposes correlation penalties for validators suboptimally performing under bad network conditions.
   - More than 50% of ETHx validators are facing downtime. This is done as a measure of caution to ensure no bugs affect a subset of the Stader validators.

   With Safe Mode, stakers see minimized impact of the loss of funds, with node operators taking on the majority of risk for sub-optimal performance.

Oracle Security

Oracles play an integral role in the functioning of ETHx contracts. Securing the Oracle operators is essential.

1. Collateral backing
   Each Oracle operator provides security collateral to back their Oracle performance. The list of Oracle operators is here. All the accumulated collateral is managed by a 3-on-5 multi-sig operated by reputed ETH ecosystem members.

2. Reputation
   Each Oracle operator is reputed, has demonstrated technical proficiency and exemplifies Ethereum’s tenets. They have publicly acknowledged their role in ETHx Oracles and their commitment to contribute to Stader DAO, the stakers and node operators.

3. Consensus mechanisms
   ETHx Oracles require a strict majority of Oracle operators to function. If a subset of Oracles cannot fulfill duties due to malintent or malfunction, ETHx Oracles would continue functioning as usual. Critical updates like Exchange Rates have built-in guardrails, enabling inspection mode if two subsequent rates deviate significantly.

4. Dispute mechanism
   Stader leverages Rated Network as an MEV misappropriation Oracle partner. A dispute mechanism powered by UMA prevents unfair erroneous reports impacting node operators.

With the current setup of Oracles and operators, ETHx strives for an optimal balance of decentralization, gas savings and transparency to continue protecting both stakers and node operators.

Protocol Health Security

To ensure that ETHx works as designed, Stader has developed several health metrics to monitor the functioning of systems.

1. Alerts
   ****- ****ETHx circulating supply increase
   ****- ****Roles & permissions change on any deployed ETHx contract
   ****- ****Lack of Oracle consensus
   - Safe Mode conditions
   ****- ****Frontrunning detection
   ****- ****Invalid signature detection
   - Exchange Rate Inspection Mode
   ****- ****Privileged user address monitoring
   ****- ****Unusual reward behavior for validators

2. Public dashboards
   To provide transparency about the state of the ETHx system, the Stader team is also building dashboards for public monitoring. We will be sharing the public dashboards in next few weeks.

This was to cover how different security aspects are managed and monitored at Stader for ETHx’s safety. For feedback and improvements, please on Twitter, Telegram or Discord.

Join 17,000+ ETHx early birds now! Get launch alpha and early access to $1M in launch incentives.

The ETHx launch is right around the corner. See you on mainnet on July 10, 2023.

The process of earning cryptocurrency profits/rewards by either staking, lending or pooling digital assets in a virtual ecosystem is known as yield farming. It's one of the major drivers of the Decentralised finance ecosystem, which is growing at a rapid pace.

The core concept is similar to that of "passive investing", it's just that the investing instruments and methods are new and more advanced. For eg: the use of smart contracts in order to hold funds.

You can definitely say that these are the financial products of the new generation money markets.

BSC yield farming

For people looking towards yield farming BSC, the options are numerous yield farming platforms for the BNB chain. Amongst crypto holders, some of the popular platforms when it comes to decentralized applications are Ellipsis Finance, Venus Protocol, Beefy Finance and Apeswap. Most of these are also available as mobile applications too.

For explanation purposes, let's dive into the yield farming protocol, Ellipsis Finance since it has one of the largest liquidities in yield farming pools in the ecosystem and offers attractive returns as well.

Do note that these yield farming platforms are also referred as decentralized exchanges. Another term to describe them is lending platforms.

One of the nice features about Ellipsis Finance is that you can see the important statistics like annual percentage rates (similar to annual interest returns) about the most active yield farms right on their homepage. Another cool thing is that platforms like these do not require an identity verification of any kind.

We should think about which farm we wish to enter before we begin to farm. We'll be using the BNBx-BNB yield farm since BNB is the native token of Binance and BNB Chain and BNBx is the liquid staking derivative by Stader. Due to the high level of popularity of both coins, the long-term viability will be extremely high.

The annual percentage return (APR) that BNBx-BNB will provide us with is shown to be 14.32% in this instance. As a result, if you were to lock away $1,000 in BNBx-BNB liquidity for a year, you could anticipate earning about $140 in returns from yield farming. For higher a DeFi yield, you can go for smaller and less popular tokens. But those usually carry more risk as well. Depending on your risk limit, the Binance Chain has numerous options available at any given time.

Connecting your wallet

You must now connect your cryptocurrency wallet to Ellipsis Finance if you haven't previously. TrustWallet, WalletConnect, and MathWallet are just a few of the various wallet alternatives; however, we'll utilize Metamask. That's because it has the highest number of Binance chain users when it comes to wallets letting you participate in decentralized finance.

Configuring BNB smart chain on Metamask is required before using Ellipsis Finance with your Metamask wallet. It's really easy to do. All you have to do is go to "Add Network" and select BNB smart chain from the drop down list.

If you don't have Metamask installed, you can get that from here.

That completed? Good. You can proceed by clicking the "Connect Wallet"button which is present in the top right corner of the screen.

Providing Liquidity

Divide your capital between the two farmed tokens before locking up any liquidity for yield farming. In order to enter the BNBx-BNB farm, $1,000 in BNB would need to be converted into $500 BNBx and $500 BNB. Use the token exchange function on Ellipsis Finance to change $500 of your BNB into BNBx. Similarly you would have to exchange $500 of your Binance coin into BUSD in order to participate in a BUSD-BNB farm.

Choose "swap" after selecting the BNBx-BNB pool , then switch your assets between the two tokens you want to farm. Since this is the lightning-fast & low transaction fees BNB Chain, the time it takes for the transaction to complete will probably be comparable to the time it takes to read this sentence.

You now need to increase the platform's liquidity. You'll see the "Add Liquidity" option right next to the "Swap" tab. Select that and choose the option of ''Add Liquidity" and enter the desired quantity of tokens now and proceed. Click the "Confirm Supply" button in the pop-up window that follows, and then confirm the transaction in your Metamask wallet.

Once you've provided liquidity, you'll get reward tokens. These are Liquidity Provider tokens which serve as proof of deposit, resembling in some ways the ticket you get when you hand over your car to a valet.

Once you have your LP tokens, select "Stake LP" in the right-hand side. To stake the desired number of BNBx-BNB LP tokens, enter the desired amount in the box which has the option to stake. Approve Ellipsis to stake your LP tokens and you are good to go. You must confirm the transaction in Metamask once more.

You have just started yield farming on Ellipsis Finance and BNB Chain, presto. Even though different procedures could have slightly different looks, the overall procedure is the same. You will easily learn how to navigate other platforms once you have completed the process on one.

Before deciding if yield farming on BNB chain is right for you, there is one more item we should cover. There are some risks associated with yield farms, especially impermanent loss.

What is Impermanent Loss?

Tokens for the liquidity pool give the holder a share of the liquidity pool. For instance, if someone becomes a liquidity provider at a 10% share, they will receive 10% of the pool when they withdraw their money. The precise make-up of what is in the pool may alter over time. This could imply that the liquidity pool has grown or shrunk since they first entered.

It can also imply that the value of the paired tokens has changed. For instance, one of the token price might have climbed while the value of the other token would have fallen. In reality, the tokens' values diverge from one another.

When the price differential between the two locked-up tokens fluctuates too much, impermanent loss happens. Trading the appreciating asset for the depreciating or stable asset allows traders to maintain the pool's balance. The 10% of the pool that the liquidity provider obtains in exchange for returning their LP token may not be worth as much as it would have been if they had simply hodled their crypto assets.

The term "impermanent loss" does not necessarily imply monetary loss. Impermanent loss simply refers to the difference between the value of withdrawn tokens and the value of deposited tokens; it does not factor in the value of yield farming profits.

Is there any BSC yield farming tracker?

There's a simple way to keep a bsc yield farming list for the BNB chain. Just visit the farm page of any digital asset exchange of your choice and you'll be able to see all the yield farming opportunities along with stats like annual percentage yield or yield percentages. Do compare and research all the options available before making a decision.

You can also use sites like coinmarketcap in order to find details like trading volume for the lending protocol you are interested in.

Another alternative is BscScan. Not only you'll be able to find specific token details like market capitalization, but you can also find out about Binance smart chain metrics like transaction fees, gas costs etc.

Conclusion

As we stated at the beginning of the article, the process of yield farming is a broad topic that includes a variety of tactics. If you followed this article, fundamentals of BSC yield farming should be a familiar concept for you and exploring DeFi opportunities on the Binance chain should be a good experience for you.

Happy farming!

Liquid staking is a relatively new concept in the world of blockchain technology and cryptocurrency. It is a way of enabling users to stake their tokens or coins in a flexible and liquid manner, allowing them to earn rewards while still being able to use and trade their tokens.

In this article, we will explore how liquid staking strengthens the web3 ecosystem and how it can benefit both users and blockchain projects.

What is liquid staking?

In traditional staking, users are required to lock up their tokens for a certain period of time in order to participate in the consensus process of a blockchain network and earn rewards. This can be a barrier for many users, as they are unable to use or trade their tokens while they are locked up.

Liquid staking allows users to stake their tokens in a more flexible way, allowing them to earn rewards while still being able to use and trade their tokens as needed.

How does liquid staking strengthen the web3 ecosystem?

There are several ways in which liquid staking can strengthen the web3 ecosystem.

First, it can increase participation in the consensus process of a blockchain network. By allowing users to stake their tokens in a more flexible way, more users may be willing to participate in staking, leading to a more decentralised and secure network.

Second, liquid staking increases the liquidity of tokens and make them more attractive to investors. When tokens are locked up in traditional staking, they are not available for trade, which can decrease their liquidity and make them less attractive to investors. With liquid staking, tokens can be staked and traded, increasing their liquidity and making them more attractive to investors.

Third, liquid staking can help to align the incentives of users and blockchain projects. With traditional staking, the incentives of users and projects are not always aligned, as users are unable to sell their tokens while they are locked up, while projects may have different goals and priorities. With liquid staking, users can earn rewards while still being able to sell their tokens if needed, aligning the incentives of users and projects.

Fourth, liquid staking can help to increase the adoption of blockchain technology and cryptocurrency. By making it easier for users to earn rewards and participate in the consensus process of a blockchain network, liquid staking can help to increase the adoption of these technologies and make them more accessible to a wider audience.

Overall, liquid staking can strengthen the web3 ecosystem by increasing participation in the consensus process, increasing the liquidity of tokens, aligning the incentives of users and projects, and increasing the adoption of blockchain technology and cryptocurrency. It is an important development in the world of blockchain and cryptocurrency and has the potential to greatly benefit both users and projects.

What Does Stader Bring to the Table?

The BNB ecosystem has the fastest growth rate in liquid staking. We at Stader ourselves provide different ways to utilize the benefits of liquid staking in DeFi.

The system around Liquid Staking is a two-fold one:

1. Earn rewards from staking.

2. Invest the liquid token in DeFi to earn even more rewards

A combination of these two generally presents a reward estimate that is much higher than average Staking rewards.

For example, users can currently earn 10-30% DeFi rewards by deploying BNBx (Stader’s liquid token representing staked BNB) across pools in DEXs or lending/leveraged reward farming strategies.