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How to use BCH 13 - DEFI+smartBCH Stake BCH and earn 14% APR interest

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Avatar for johnsonchen
Written by   20
1 month ago

This is the series of How to use BCH. If you haven't read it before, please check https://noise.cash/post/1q7872g2 (Chinese version, will be translated to EN soon)

If you don't know the difference between BCH and smartBCH, please read this first. https://read.cash/@johnsonchen/what-is-smartbch-isnt-it-just-bch-17e6f2a2

The 13rd How to use BCH is here! In this article, we will teach you how to operate Decentralized Exchange (DEFI) in the smartBCH network. So that you can stake BCH and earn 14% APR interest.

SmartBCH has launched for one month. The first Decentralized Exchange launched on mainnet as well! It's called benswap(benswap.cash) .

In this article, we will teach you how to transfer BCH you earn on noise.cash to smartBCH and stake them.

Let's go!


Get your Metamask ready

We need to set up a smartBCH Metamask wallet first.

If you don't know how to do it, please read https://read.cash/@johnsonchen/how-to-use-bch-11-connect-smartbch-metamask-wallet-to-play-defi-9d10e715 (EN) or https://read.cash/@johnsonchen/bch-11-smartbch-6f6fd030 (Chinese)


Base on the following diagram, we need to use the bridge (1) to move our BCH to the smartBCH network.

First, register an account in https://coinflex.com/

(Because fully decentralized bridge is still developing, we will use the bridge in CoinFlex Exchange first.)

Click Wallet & Order -> Balance on the upper right corner.

Then click BCH -> Deposit

You will see QR code here. You can now send BCH using QR code.

We need to wait (avg) 10 mins to make sure BCH is deposited.

Then we are ready to cross the bridge (1) !!

Click Withdraw

The key step! You need to click SEP20 (SEP stands for smartBCH evolution proposals)

You need to fill the address of Metamask in the Destination BCH Address.

If you don't know about it, please read the following figure. The string with 0x... is the address. You can copy the address by clicking it.

Click submit. (0 fee now)

Due to the security issue, it takes about 10mins to withdraw.

If you see the BCH appear in your Metamask wallet, then you are done!

Congratulation! Now you have transferred your BCH to the smartBCH network (Diagram (1)).

Let's try staking.


Now we are entering the (2) part in the diagram. Use Metamask to run the smartBCH applications.

First, open URL https://benswap.cash/.

This is the first smartBCH decentralized exchange. You can swap coins here.

Click Connect -> Metamask to login.


Swap coins

Click Trade -> Exchange

Then you can swap BCH to other coins. For example, EBEN which is issued by benswap.

Then click Swap.

You can see the swap information. The price is 640.259 EBEN/BCH.

The price means that you can pay 1 BCH to get 640.259 EBEN.

The number 0.545 is the minimum EBEN you will received in this swap.

0.05% is the price impace range.

(Due to the fluctuation, 0.05% will make sure the price won't fall outside the range.)

0.00000171606 BCH is the fee requested by benswap.

Click Confirm Swap. You will see the following screen.

You will need to pay 0.000172 BCH to smartBCH validators.

The total is 0.00103 BCH (including the coins you are going to swap)

Click Confirm, then you are done.


Display EBEN coins

If you just swap EBEN coins, you will see an empty coin list except BCH in Metamask.

We need to add EBEN coins manually.

Go to https://benswap.cash/presale

Click => Add EBEN to Metamask <=

Then you are set.


Staking BCH and earing EBEN interest

Click Pools, you will see two columns.

The left side is to stake EBEN, and you will receive 422.42% APR interest. (You are right, the new exchange usually releases such favor to encourage people to join in)

The right side is to stake WBCH and earn 14.95% APR interest.

(This is what we want today. Just like lending money and earning interest.)

(WBCH is the token of BCH, we will explain it later.)

The process on both sides are the same.

Click Approve Contract -> Confirm

Stake button will show up. Click it.

But you won't find any BCH available for staking. That's because it required WBCH coins. You need to swap BCH to WBCH in exchange first.

(Warning: WBCH is issued by the other contract. Swapping to WBCH is more risky than holding BCH. That's because if the wBCH is out of liquality, you may not be able to swap back. Remember to trade with caution.)

Here we go. Now you can stake WBCH now.

The interest is displayed in real time. If you want to transfer interest to the wallet, you can click "Harvest."

If you want to retrieve your money, just click "-" to withdraw to the wallet.


Liquidity

You can also provide liquidity providers (LP) to earn fees. LP are much more complex. We won't discuss it here.


Withdraw BCH

If you want to transfer money from smartBCH to BCH.

Go back CoinFlex and click BCH->Deposit.

Select SEP20 and then send BCH to this address from your Metamask wallet.

Then you can sell them or withdraw to the BCH network.


It looks complex but if you go through it once, you will find it is really easy.

The overall user experience is quite good. The only drawback is to wait for 10 mins confirmations twice when crossing the bridge.

The fees on BCH and smartBCH are both low.

This is the power of the BCH money network. With additional ETH computing power, we will see infinite possibilities in the future.

Both benswap and smartBCH just launched recently and are still young. Remember to trade with caution.

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Comments

Wow! explained in a great details, thank you for that, it is pretty cool.

$ 0.00
1 month ago

Thank you!

$ 0.00
1 month ago

Good work my friend. Excellent. It has served me well, well detailed and perfectly explained, the images help a lot, which is appreciated. Thanks for sharing. I have just started in read and in this world of BCH.

$ 0.01
1 month ago

glad that this article helps!! If you come up with any question, just let me know :)

$ 0.00
1 month ago

excellent post, I already have metamask and I hope to understand about smartbch, greetings.

$ 0.00
1 month ago

I will read this article once I get home because I am researching this topic to use it myself

$ 0.01
1 month ago

no problem. If you got any problems, please let me know

$ 0.01
1 month ago

I guess I didn't learn anything new but it was a good start. For many, this will be a good guide or how-to, I do believe that, but in my personal case, your article is not much help because I already know what you teach in your article. And I haven't use WBCH because that token adds extra risks because I don't see a clear path to who has released such token and I don't have a trusty source of info on that token, so to me, trading wBCH for sBCH is too much of a risk. I guess my only option will be to wait for flexUSD to be added to SmartBCH. I think at that point your yield guide will make more sense and be less risky. Anyway, your article was a good read overall.

$ 0.01
1 month ago

you are right. Swapping to wBCH is still risky. I should mention it in the article. The ecosystem is still young. It's still risky at the current stage. Just wait for more development!

$ 0.00
1 month ago

Your article was so much informed about bch. You have a good idea about that online trading I think dear

$ 0.01
1 month ago

Thank you so much!!

$ 0.00
1 month ago

You know so much about BCH

$ 0.01
1 month ago

haha thank you!

$ 0.00
1 month ago