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