NewsFlash Articles Data Fundraising BlockBeats Pro

Partnered With:

Want to participate in a Binance Smart Chain (BSC) project? Here's your onboarding guide

DeFi之道

Read this article in 22 Minutes

BSC Project Onboarding Guide.

Original Title: "Exclusive | The BSC Ecosystem Token Price Is Soaring. What to Do If You Don't Want to Miss Out or Chase High? Here Is a Boarding Guide"

Original Source: The Way of DeFi

On the first day back to work after the Spring Festival, various cryptocurrency community groups became active, and projects on the Binance Smart Chain (BSC) became a hot topic of discussion in various communities.

BSC is a fully Forked Ethereum, with faster speed and the strong traffic support of Binance as a public chain. During the high gas fee period before the launch of Ethereum 2.0, BSC has become a new choice for DeFi players.

Currently, the total locked value (TVL) on BSC has exceeded $10 billion, and in the past three days, it has been increasing at an almost $1 billion per day speed, showing very strong growth momentum.

（图片来源：https://www.defistation.io/）

(Image Source: https://www.defistation.io/)

On BSC, projects in various tracks such as trading, banking, yield farming, swapping, stablecoins, insurance, oracle, etc., have gathered. Among them, the leading project in the trading track, PancakeSwap, has a daily trading volume of $1.4 billion, surpassing the Ethereum-based DEX leader Uniswap. The leading project in the yield farming track, Autofarm, has a TVL of $1.2 billion, far exceeding the Ethereum-based yield farming star YFI. The leading project in the banking track, Venus, has a TVL almost on par with Aave in the Ethereum ecosystem.

In 2020, the DeFi boom in the Ethereum ecosystem gave rise to many tokens that multiplied in value. However, as we enter 2021, tokens in the BSC ecosystem have started to dominate the market, with various DeFi tokens outperforming those in the Ethereum ecosystem. Taking the trading track as an example, the PancakeSwap token CAKE has increased by 25 times since the beginning of the year, while during the same period, Uniswap and SushiSwap tokens have only increased by less than 4 times.

（2021年至今，CAKE、UNI、SUSHI涨幅）

(2021 to date, CAKE, UNI, SUSHI ROI)

With strong fundamentals and unstoppable buying pressure, it's hard to ignore the presence of BSC.

As BNB surged past $270 and CAKE crossed $18, amid a community-wide FOMO sentiment, let's explore which projects on BSC are still open for participation.

Tools

To do a good job, one must first have the right tools. Before participating in BSC projects, you need to have some essential tools.

Live Data: defistation.io

Defistation showcases some of the top projects on BSC. These projects, compared to many unlisted and unknown projects, offer more security and lower rug-pull risks. Users participating can prioritize projects listed on Defistation.

On this website, you can view each project's total value locked (TVL). By clicking on each project, you can further explore detailed data, including historical TVL trends, project websites, Twitter links, and documentation.

Price Charts: https://pancakeswap.info

Enter each coin to see the corresponding coin's historical trend. Due to today's BSC network maintenance, the data cannot be displayed.

Blockchain Explorer: https://bscscan.com/

Similar to the Ethereum Explorer, you can view the historical transaction records of each address and popular coins.

Cross-chain Token Conversion: https://www.binance.org/en/bridge

Binance Bridge, this is a bridge service specially created by BSC to map blockchain assets to the BSC ecosystem. Through Binance Bridge, you can map almost all popular blockchain assets to the BSC network, thereby participating in various DeFi activities. Of course, if you are very lazy, you can directly transfer assets from Binance exchange to the BSC network, which is also very convenient.

Connecting to the BSC Network

If you are participating in BSC for the first time, you need to set up the BSC network. Taking MetaMask wallet as an example, open the MetaMask extension in the Google browser, choose Custom RPC, fill in the Network Name as Binance Smart Chain, the New RPC URL as https://bsc-dataseed1.binance.org/, the Chain ID as 56, the Symbol as BNB, and the Block Explorer URL as https://bscscan.com/ (for specific settings, you can refer to this document:

https://bscscan.freshdesk.com/support/solutions/articles/67000185905-how-to-connect-metamask-to-binance-smart-chain-)

After connecting, do not transfer a large amount of funds all at once. Once lost, it cannot be recovered. You can try earning a small amount of money to your account to test the waters.

Find a Project

Currently, some outstanding projects on BSC are as follows:

Trading, Liquidity Providing, Basic Mining: Cake

Banking Track: XVS, For, Cream

Auto Yield Farms: Acryptos, Autofarm, Bunny, Beefy

Swap Track: Cake, Bake, Burger, Anyswap

Stablecoin Track: bdolla

Insurance Category: Helmet wstoe

Among them, Cake is similar to BNB, XVS is similar to AAVE+UNI+MKR, and ACS, Auto, Bunny are similar to YFI, Harvest.

If you have experience with DeFi on Ethereum, getting started with these projects will be very easy. Moreover, compared to Ethereum, the transaction fees on these are ridiculously low.

For example, at the time of writing this article, when I initiated a transaction on Uniswap, the fee was $17.58, almost $100.

On the other hand, issuing a transaction on PancakeSwap costs 0.002163 BNB. At a price of $250 per BNB, the gas fee is $0.54, which is more than a bargain compared to Ethereum's $17.58.

Farming

The favorite activity of DeFi farmers is farming, and on BSC, the most fertile land is on PancakeSwap. Currently, there are 67 plots of land available for farming on PancakeSwap. Most of the farmland requires the use of BNB as the farming tool, which is also why BNB has surged in price, as no one is selling: the tool is precious, and farmers are holding.

If you do not want to take on the risk of impermanent loss, you can choose to participate in single-asset pool mining. Currently, there are 16 pools available for mining on PancakeSwap. The highest-yielding pool is the CAKE Pool, with an astonishing APR of 503.74%!

Participating in IFO

IFO (Initial Farm Offerings), meaning the first farm offering in Chinese, is a major innovation on BSC on PancakeSwap. The participation method involves providing liquidity with CAKE+BNB on the Pancakeswap platform, and after the subscription starts, submitting LP in a designated location on Pancakeswap.

On January 13, PancakeSwap kicked off its first IFO project, completing a total of 6 offerings so far. The most recent one was Berry, which was oversubscribed by 187 times. The subscription price was $0.5, and upon listing, it surged to $6, rewarding all subscribers generously. Currently, Berry is priced at $20, nearly 40 times higher than the offering price.

In fact, all Initial Farm Offerings (IFOs) launched on PancakeSwap have been profitable so far, greatly inspiring users to provide liquidity on the platform. Compared to Uniswap, where providing liquidity only earns trading fees, on PancakeSwap, not only are there token rewards, but there are also occasional IFOs to participate in. Once you participate, the returns are often tens of times higher, creating a wealth effect that attracts funds effortlessly.

Joining a Yield Farm

YFI, as a DeFi yield farming classic on Ethereum, has now lost its former glory. Meanwhile, the rapidly rising autofarm on Binance Smart Chain (BSC) is gaining momentum.

Currently, autofarm has $1.3 billion in Total Value Locked (TVL), while YFI only has $700 million. Apart from surpassing YFI in TVL, autofarm also offers impressive yields, with the highest Annual Percentage Yield (APY) reaching an astonishing 2000%! If you hold assets such as BNB, USDT, BTC, ETH, DOT, LINK, and are not in a hurry to sell, consider participating in autofarm.

Yield farming pools compete based on scale and returns, and autofarm, despite not being Binance's own project, stands out, largely benefiting from Binance's native tokens XVS and CAKE's price surge. Of course, autofarm's product design is subtly innovative, with its native token experiencing a significant price increase (over 420x from its low point!), offering a user-friendly experience, attention to detail, and a wide range of choices.

Lending

Venus is the largest lending platform on BSC, currently ranking first in TVL on BSC, with $4 billion locked in. This surpasses AAVE V1 on Ethereum. Presently, the APY for stablecoins like USDC on Venus ranges from 15% to 20% (much higher than bank interest rates, right?)

Venus, as Binance's own on-chain minting stablecoin project, holds a monopoly position in lending, order book, and derivatives on the BSC chain. With a current market value of less than 800 million USD compared to AAVE's market value of 5.2 billion USD and UNI's market value of 6.1 billion USD, it still has a lot of room to grow.

BSC Token Prices Are Soaring, Is It Still a Good Time to Buy?

A coin that does not have price manipulation is not something people would want to buy, even if it's a valuable coin. However, coins that are being hyped up, especially BSC-based tokens, are experiencing extremely rapid price surges, making buyers worried about buying at the peak.

At this point, you need to establish your own set of value assessment criteria.

For example, BNB has now risen to $250. Is it a bubble? To some extent, yes.

Yes, because BNB's market cap is 40 billion USD, which is almost as high as China's highest-valued brokerage firm, CITIC Securities (370 billion USD). Coinbase, as the most compliant exchange in the crypto industry, is valued at only 80 billion USD.

No, because BNB, as the exchange with the highest trading volume and strongest execution in the crypto industry (having shown some resistance to DeFi last year but quickly becoming the most aggressive force in the DeFi market this year), can withstand market premiums. Furthermore, BNB's value comes not only from Binance Exchange's trading fees but also from DeFi applications on BSC, which Coinbase cannot achieve. So, it's not surprising that BNB's market cap is on par with Coinbase's valuation.

For another example, CAKE has surged dramatically, with its price increasing more than 20 times since the beginning of the year. Is it still a good time to buy?

The value assessment criteria for evaluating DEXs can be based on indicators such as fully diluted market cap/lock-up amount, fully diluted market cap/24-hour trading volume, and fully diluted market cap/fee revenue. Generally, the lower these indicators are, the more undervalued the project is.

Here, we select the first two indicators. It can be seen that in terms of fully diluted market cap/lock-up amount, UNI, SUSHI, CAKE are 16.92, 9.81, 1.25 respectively. In terms of fully diluted market cap/24-hour trading volume, the three are 0.35, 0.27, 0.04 respectively.

It is obvious that the value of CAKE is still very low, which means that CAKE still has considerable room for growth. Of course, this is premised on the continued rapid development of the BSC ecosystem, as the issue of high Ethereum gas fees remains unresolved.

For other BSC projects, readers can also try to benchmark against corresponding projects on Ethereum using an appropriate model for valuation, but they will not be listed one by one here.

For friends who do not want to miss out on the BSC bonus but are afraid of buying high, the most prudent method is to use your valuable coins to participate in various activities on BSC, such as IFOs, yield farms, or by depositing funds into lending pools.