hey everyone, this is just a quick update that I know since my experimental journey to find the best DeFi (or CeFi BSC for some people) to help newbies have their newest and easiest experience without burning a HUGE WHOLE in their wallet in the big boy's battlefield - ETH chain.
And if you haven't seen my extensive writeups, you can feel free to check them out in my posts here in read.cash to have a better understanding how I tried, and even BURNT (badly) from a rug pull site!
Therefore, this post is going to be (sort of) short and straight to the point for you to know and think when you exit, after several tests, trials, and planning.
1. Pools
Pools are great, they started in Pancake swap, however there are some things you need to remember.
(I wish I could colour this!)
Remember: some Pools are limited supply, such as PancakeSwap and ApeSwap, including Squirrel.Finance; so if you are not confident you cannot get at least your gas fees covered, don't enter!
(So far Pancake Swap's longer lasting pools right now are SFP and LIT, however, the yield is so low you might be in a loss if you go in too late)
2. Every Command (or Click) COSTS YOU MONEY (gas fees)
If you have limited funds, choose the most comfortable you have with you, and you just go for one.
A very good example is when you have a wide pools invested, and when it said "Harvest All" in the home page and has a number to it, like this one above that states (4), this means when you click on that, you will have 4 commands executed, which also means you need to pay gas fees x 4 and their prices varies depending on the complexity of the pool / farm contract.
3. Know the sequence! Every Pool Has these sequences
(if you already have the native BEP20 tokens token to invest)
Unlock the pool
Stake your token into the pool
Harvest mined tokens from pool
Unstake your token from the pool
There are ALWAYS AT LEAST 4 steps of gas fees you need to prepare yourself. Unlocking pools usually cost between $0.12 - $0.30 (depending on BNB price), and stake and unstake can cost you between $0.40 - $0.90 (depending on BNB price and complexity of the contract)
For N00bs / Newbies:
Contract is like a small program. So every time you want to run / execute the program, you need to pay for its service to activate the program.
4. Plan your harvest!
I know a lot of people would be so excited to test the stake and harvest mined tokens they forgot that when you activate harvesting, you need to pay fees.
So what is your best time to have your FIRST harvest?
If your mind tokens covers all of these below:
Transfer fee from your native coin (if you use BCH) to BSC chain.
Transfer fee for your $BNB tokens on BSC chain
Active pool fee
Stake pool fee
Harvest pool fee
Deposit fee (for CubDeFi.com)
Optional: Unstake fee
(1 + 2 + 3 + 4 + 5 + 6) = your first harvest mined token's price based on the market price of the day.
For example, because I already have BNB in my wallet when I tested CubDeFi.com , I only needed to remember my CUB tokens mined for that specific pool covers row 1,3,4 + harvest fee to cover my first gas fee loss.
After that you can subsequently see how much % of your capital you want to harvest + harvest fee you want, add those in, and aim for the mined token price on that day to cover your fees.
If you plan to immediately swap it back to the coin that you love, like BCH, then you need to add in swap fee + transfer fee out to Binance.com, and transfer fee back to your external wallet for secure keeping.
Therefore for harvesting capital gains back to BCH native coin would be
Harvest gas fee + % capital + swap fee + transfer out to Binance.com fee + Binance.com to native wallet fee
Yes. It is very nerve wrecking, but if you know all these and you have a notebook / better still, a spreadsheet to record these, you will know approximately when you can harvest, and how much you can harvest without losing too much in between.
I do hope that this brief walkthrough of your preparation on fees will help you to plan ahead and BE READY when you jump into DeFi space. Otherwise, you might lose more than you gain if you are not wise with your planning.
