How To Stake and Farm on the GoCryptoMe DEX
Are you looking to dive deeper into the world of decentralized finance (DeFi) and explore new ways to grow your digital assets? If so, you're in the right place! In this guide, we’ll walk you through the simple process of creating liquidity pairs and farming crypto rewards on the GoCryptoMe Decentralized Exchange (DEX).
Why should you consider this? Well, it's simple. By providing liquidity on the GoCryptoMe DEX, you're not only contributing to the smooth operation and stability of the exchange, but you're also positioning yourself to earn passive income in the form of crypto rewards. It's a win-win situation!
Creating liquidity pairs involves depositing two types of tokens into a liquidity pool. This makes trading between these tokens on the platform easier, and in return, you earn fees from the trades that happen in your pool. It's like being the bank in a peer-to-peer trading system!
But the benefits don't stop there. You can deposit your LP tokens into yield farms and staking pools on the GoCryptoMe platform, you can earn additional crypto rewards.
Are you ready to step into the future of finance and make your crypto work harder for you? Let's dive in!
What You’ll Need
Before getting started, make sure you have the following:
- A Crypto Wallet
- Tokens you want to stake or farm like GCME, ESCROW and BNB
- A small amount of extra BNB to pay for transaction fees
If any of those words don’t make sense, don’t worry! We’ve got plenty of helpful guides that show you how to create a crypto wallet, fund it with BNB and create LP tokens on a DEX.
How To Stake and Farm on the GoCryptoMe DEX - A Step by Step Guide
Now that you’ve got everything you need, let’s guide you through the process and start racking up those staking and farming rewards.
Step 1: Connect to the GCME DEX
First, head to https://gocryptome.io/ on your Desktop PC or from within your mobile crypto wallet app. If it’s your first time connecting to the site, you should see a pop-up in your wallet extension that asks if you are sure you want to proceed.
Click ‘Connect’ to complete the connection. If you’re having trouble, check out our detailed guide on How to Connect to GCME.
After connecting to the site, click ‘Discover’ and hit ‘Decentralized Exchange on the dropdown menu. This will bring you to the DEX.
Step 2: Choose Whether You Want To Single-Stake or Yield Farm LP Tokens
From the landing page of the GCME DEX, you’ll see a few different tabs. If you need to buy GCME or ESCROW tokens using the BNB in your wallet, follow the simple prompts in our easy ‘Swap’ tool.
If you just want to single-stake one type of cryptocurrency, like GCME or ESCROW, click ‘Pools’ and skip ahead to Step 3.
If you’ve already created the Liquidity Pair (LP Tokens) that you want to farm, click ‘Farms’ and skip to Step 3A.
If you still need to create the Liquidity Pair, click ‘Liquidity’ and complete the following instructions, then proceed to Step 3A.
To create LP tokens, hit ‘Add Liquidity’.
In the window that pops up, select the tokens you’d like to farm with. For this example, let’s use BNB and GCME. Fill in the field with the amount of tokens you’d like to use to create your LP tokens and click ‘Supply’.
The platform will quickly crunch the numbers and give you a few more details about your LP tokens. When you’re ready, click ‘Enable GCME’ and confirm the pop-up transaction in your crypto wallet extension.
If your crypto wallet asks you to set a spending cap, just hit ‘Use Default’ and then click ‘Next’, then hit ‘Approve’. Once the transaction has cleared, the button within the site will change to ‘Confirm Supply.’ Click this button, and confirm the transaction in your crypto wallet again.
You should see a small pop-up box saying ‘Liquidity Added’. Close the box and click Farms from the menu located above the panel.
Step 3: Deposit Tokens into Staking Pools
From the ‘Pools’ page, you’ll be able to see all the staking contracts currently available on the GCME Dex. Choose the pool you want to stake your tokens in and hit ‘Stake’, in this example, we’ll stake GCME tokens to earn passive GCME rewards.
After hitting ‘Stake’, a small window will pop up on your screen. Type the amount of tokens you’d like to deposit to the pool in the field provided. Using the slider, select how long you’d like to stake your tokens, then click ‘Approve’.
In your crypto wallet extension, click ‘Use Default’ to set your spending cap. Click ‘Next’, then click ‘Approve’ to process the transaction.
You’ll notice the little blue button on the panel change to ‘Stake’. Click the button, and then approve the transaction in your wallet by clicking ‘Confirm’.
After the transaction has been completed, you’ll be able to clearly see your tokens staked in the pool and earning rewards for you. The display will not only tell you how much you’ve deposited but you’ll also be shown your total rewards, token release date, and APY.
Step 3A: Deposit LP Tokens into Farms
On the ‘Farms’ page, you’ll be able to see all the current yield farms that are actively distributing real-time crypto rewards to depositors. To join them and start earning passive income, choose your preferred Farm and click ‘Stake’. In this example, we’ll be farming the GCME-BNB LP tokens we created earlier.
After clicking ‘Stake’, you’ll see a small window appear asking the amount of LP tokens you’d like to stake in the farm. Type in the number and choose how long you’d like to lock your tokens in the pool for using the slider provided, then click approve.
As before, your crypto wallet might ask you to set a spending cap. Click ‘Use Default’ again, hit ‘Next’ and then click ‘Approve’.
The blue button in the window will change to ‘Stake’. Click it, and then approve the transaction in your wallet.
If you’ve followed the steps correctly, the panel should show your LP tokens clearly staked in the farm and earning you passive income. You’ll be able to see how much crypto you’ve earned, your APY (Annual Percentage Yield), and when your LP tokens will unlock.
What Are The Risks?
Yield farming is a great way to earn passive income through cryptocurrency while supporting innovative blockchain projects that you believe in. However, it’s still important to be aware of the risks associated with providing liquidity.
The most important thing you need to be aware of when yield farming is impermanent loss. Impermanent loss refers to a potential loss of value caused by a divergence in the price ratio of the assets in a trading pool. Fortunately, we have a helpful guide on impermanent loss and how you can avoid it right here in the GoCryptoMe Blog.