How-2-DeFi on BSC: Guide to Staking and Yield Farming on Binance Smart Chain — DeFi Fundamentals

6 min readAug 5, 2021

This article is brought to you by OpenMeow…

Hello DeFi cats and kittens!

It’s Logan, your second favorite community lead here today to make sure you navigate DeFi safely and visually!

This guide is designed to help you learn some basic DeFi Fundamentals.

Today, I’ll cover how to use a DeFi wallet on Binance Smart Chain (BSC), get tokens moved properly, and there will be some ‘power user’ tips in here as well…

For these purposes, I’ll be using OCP’s OmniCOMP platform, but again, these skills should be almost universally applicable across chains and platforms. I chose OCP because I work closely with them in a professional manner; they have demonstrated success in this industry, I have my own tokens are there, and I humbly believe their platform is pretty awesome.

So, without further ado…

Let’s turn you into a true-blue green-thumbed yield farmer!

Here’s the contents:

PREDEFI CHECKLIST
SINGLE ASSET STAKING
BECOME A LIQUIDITY PROVIDER

PREDEFI CHECKLIST

There are THREE things you need before continuing this tutorial, and are MUST HAVE to do DeFi on Binance Smart Chain.

[1] Metamask
We have a mini-guide just for this part if you’d like.
You can also see an explanation video and DOWNLOAD Metamask here.
[Note: There are several other online wallets you can try!]

[2]BSC Network on your Metamask
Metamask can operate on many different blockchains, but it’s default set up is for the Ethereum Network only. We want to use Binance Smart Chain (BSC) - setting it up is easy!

We’ve made a mini-guide just for this part too!

[Note: Binance Smart Chain is a blockchain like Ethereum or Bitcoin — Binance the company/exchange is a separate entity all together!]

[3] Assets on Binance Smart Chain (BSC), also available on OmniCOMP
More assets are constantly being added! Check omnicomp.ocp.finance before proceeding.

You can’t do DeFi without assets!

SINGLE ASSET STAKING

Do you have your metamask set to BSC with some assets ready?! Let’s do this.

Staking allows your assets on this platform to be lent to borrowers. You earn a dynamic interest rate plus rewards in the form of “OmniCOMP” tokens, or $OmniC — Cool.

[1] Go to https://omnicomp.ocp.finance

Omni Consumer Protocols is an OpenDAO partner and recipient of an OpenDAO grant. They host the $USDO minting and support platforms.

[2] Enable

In the example below, we are using $REEF, but you can do any available asset. First you need to grant the website permission to do this on your behalf.

STAKE is on the left! (We’ll be borrowing maybe later.)

Click the Asset. Click Enable. Confirm in Wallet.

[3] Stake!

This next step finalizes the staking (just click the withdraw button to later get your assets back into your wallet.)

Enter the amount you’d like to stake. Click — Submit. Confirm in wallet.

You are earning OmniC rewards now!

You can see them accumulating by checking the rewards button at the top of the platform!

Rewards! It’s in the middle.

BECOME A LIQUIDITY PROVIDER

Simplified, being an LP is a way of earning rewards in DeFi for effectively being the bank. You will become a “liquidity provider” and typically add two types of currency to a “liquidity pool” (somewhat confusingly, providers and pools are both referred to as LPs.)

Others will use your currencies to trade back and forth. You will receive a fee in addition to bonuses from the platform for providing such an integral service to the industry and her users.

We highly recommend further reading about these topics for optimal investment power (see “impermanent loss”)

In today’s tutorial, we will be joining some stablecoin pools, these are often considered less risky alternatives to adding tokens that fluctuate in value like Bitcoin, Ethereum, or others (again see: impermanent loss)

We’ll be deploying USDO and BUSD OmniTRADE and OmniFARMS to earn a wide variety of tokens!

[1] Get BUSD (and/or USDO)

I mentioned liquidity providers typically provide TWO assets to the pool, but OmniTRADE makes this easy on us, and we just need ONE. So, for now…

Get some BUSD — as much as you’d like to put into the pool.

Buy or Borrow BUSD
Option #2: Mint USDO through the OmniCOMP platform (you can mint this against the value of your staked assets to a limit.)

[2] Go to OmniTRADE.ocp.finance/#/pools

We will add our BUSD or USDO to the pool here; with the unique features available at OmniTrade, the BUSD or USDO will automatically be converted to the other for us when we add it to the pool (instead of us needing to add two!)

Enter the amount, in BUSD, that you’d like to pool. Click — “Buy LP Tokens”

In exchange we will get an “LP Token” that represents our share of the pool and can be returned here to claim the underlying collateral!

[3] Go To OmniFARMS.ocp.finance

We will stake our LP tokens from OmniTRADE here and start earning platform incentives for being liquidity providers! You’ll have to find the farm that rewards the token of your choice.

Note the “Reward Token” Column.

Click — The Farm of Your Choice