PancakeSwap for Beginners: How Liquidity Pools Work (Simple and Clear)

[00:01] oldest and best decentralized crypto exchanges. This is Pancake Swop. Today I'll tell you how exchanges are made there, how to participate in types of earnings there are on this decentralized exchange. By the way, this is

[00:14] already our fourth video about the DeFi sphere, about how a newbie can earn [music] in the sphere of decentralized finance. If you haven't watched the last do. You will now get a hint somewhere above or here.

[00:26] Be sure to watch the very first video, where I talk about crypto newbie. Well, we won't delay, you're on Denis go. In this video I will not be pouring any water at all. I'll only cover

[00:40] useful to both a beginner and an experienced trader, or and trying to make money in the Defi space. We are moving on to the official website, which is available via the link below. Guys, there's a lot of phishing going on these days, a

[00:55] lot of fake links, so either check through GPT or description. Unfortunately, it is not a referral one. I wish I would have safe. And here you will find the real Pkakes website. SW with pancake has very

[01:09] mixed feelings, and we have mixed emotions. Because this [music] is one scam, because it is here that tokens are bought that are not yet on the exchange, and you can buy them using insider information. Guys, if

[01:22] people like this write to you on Telegram, be sure to refuse. Most likely, you will be deceived in 99% of cases if they tell you to switch to pancake and buy scammers, please do not trust them. We are now moving on to the main

[01:35] page. Here we have the first thing that welcomes us - it is an immediate exchange. We another cryptocurrency. We will pay a commission for this. If you want to do or any decentralized application, first exchange it on an

[01:51] exchange. Exchange on centralized exchanges. Again, whatever you want. You can register there and choose to first buy the coins you want to work with, and then move on to Dex.

[02:04] extra fees. And the fees can be very and see the best price exchanges and various events we have on Punkixswap. You can just

[02:17] browse through it to get acquainted. You and I won't need this. by section of the transaction. Here, we can again exchange one cryptocurrency for another, set up a network of trading bots, or place a limit order to buy or sell any

[02:31] cryptocurrency on a decentralized network. To do this, you and I need to connect I've already talked about the different types of wallets on my channel many times. I have a review of Metaask, Trust Wallet, Phantom Wallet, and Ry

[02:43] Wallet. The most convenient of them and the newest one is Raby Wallet. I will wallet button. By the way, again, I’ll give you a link to Rabbivot’s review now. You can I explain everything in detail there too. I press the Rab World button. Now I'll enter my password for

[02:59] this wallet and then I'll show you what to do. That's it, I press the connect button. And now I have a wallet connected, and my balance, which is on this wallet, is already displayed [music] here on the PK XW exchange. Here, using the

[03:14] browser extension button, you can also see everything that concerns my wallet. We will return to this section a little later. For now, there's nothing to see here, but unfortunately, there's nothing to see. There is also a button to buy cryptocurrency. You can

[03:30] You see, the estimated commission amount is $5. There is no point in this. the best conditions in our description and buy everything you need there, and then send it here from there. Next we have perpetual

[03:43] this functionality. For some reason it has n't loaded for me right now, but That is, the same futures, again, that are on centralized exchanges. because you pay additional commissions. The next tab we

[03:57] really, really need is liquidity farming and various investments. This is where you and I main money. We'll get to it a little later, because it's the largest section there is. Let's go to the Cakeepad section first. To

[04:09] access the Cakeepad section, we need to switch to BNB SmartChain. That is, we need to switch to another grid. I'll press the switch button in my wallet and see that now my network has changed. Here I have the

[04:22] I work on displayed. The wallet is displayed slightly to the right. I'll tell you right away so that there is no question about it. So what is Cakeepad? Pad is the same thing that is found on centralized exchanges. Let 's say on Bbit it's launchpad. This is where

[04:35] you put your coins. In our case, yes, these are coins from the own any part of them, you are eligible to participate in the launchpad. That is, you invest your cakes, and you are given tokens of the new project in proportion to how much you invested

[04:49] . More precisely, they provide the opportunity to purchase tokens of a new project. Here was the last one, Sigma tokens. By the way, I think they are now In general, we can go to the completed section and see what

[05:02] tokens were here. Well, roughly speaking, you can check them on the top exchanges and see which of them were listed, which of them brought in at least some money and, well, whether there was any point in investing at all. In general, of course, it

[05:15] always makes sense, because you can stumble upon some bitcoins, yes, in 2010, something might happen. I'm just saying that some portion can, of course, be allocated to buying back these tokens, especially if you hold the cake

[05:28] play section. Let's move on here. Here our task is to deceive this damn racket using different schemes. There is a section here that is similar to binary options. That is, here you make a forecast for the price up or down, that is, you just press

[05:43] [music] one of the buttons and during the expiration time, that is, after 1 minute 32 seconds, you must guess where the price of various assets will go. Here we have Bitcoin, BNB and Ethereum. Select the cryptocurrency you

[05:56] want to predict the movement of, and then click the "borrow up" and "borrow down" buttons. You put your money on it, there's no other way to call it. Payout is 2x, that is, you winning you receive $200. I don't recommend going here. There is no point in this

[06:10] I'll make some kind of column where we'll go in and play at the casino. If you are . Perhaps we will do something similar . There is also a lottery section. I don't Buy a ticket, maybe you'll win something, maybe you won't.

[06:24] Let's move on to the most interesting part, namely liquidity farming. Click the liquidity farm button. This is where the bulk of the income comes from for those seriously involved in cryptocurrency, specifically in the DeFi (Decentralized

[06:37] Finance) space, which allows us to earn from the fees people pay when exchanging one cryptocurrency for another. So, what is a liquidity pool and a liquidity pool farm? This is when one person wants

[06:49] to sell their Bitcoin, and another wants to buy it for USDT. That is, we form a pool. One person brings USDT there, another person brings Bitcoin there. And already said, for every action in the

[07:03] decentralized network, users pay a commission, and if you provide one or two tokens for exchange, you can receive a portion of this commission. That's the whole point of pool liquidity. This means that you essentially receive a portion of the commission

[07:16] that people pay to the decentralized exchange. And here, just below, you can these very two coins that will be traded, which you are ready to provide. Let's say I have BNB and USDT. And I,

[07:30] in the BNB network, can provide these two tokens. But I will show you an example expensive mesh for me. This is the least profitable grid, but I already have tokens there, I’m too lazy to switch. Therefore, I will show how exchange is done on

[07:43] here in the Networks section. That is, now I am shown all the networks and I will have exclusively the Ethereum network. That's it, my Ethereum network pool that interests me. What do we have next? commission level. This means you

[07:58] choose how much commission you will receive. It depends on how much money you invest and what your strategy is, yes, for this pool. There are different We will talk about strategies in the following videos. Be sure to subscribe to the

[08:11] detail there. Here I will just say that you can choose how much commission you will receive, but a lot depends on this. Next we have the APR, that is, the annual percentage rate, which is calculated for today, for today's hour.

[08:25] The rate is updated every time, it is floating. Right now it's 58% per annum, but depending on how many people are in the pool and what amounts are currently participating in the pool basically, you can do that and you'll get all the information about APR and how it's

[08:41] calculated. A little to the right we have TVL, that is, the total amount of funds blocked in this pool. That is, we see that specifically here there are 1,400 blocked funds. Next is the volume for 24 hours, that is,

[08:53] how many funds in total were in this pool in 24 hours. Well, what a type of pool. The pool type will now be V3 almost everywhere. What actually differs is the transaction speed, changes in some errors, and the ability to choose the range

[09:08] in which your pool will operate. So , let's say, in version V2, if there was an ERIUM USDT pair, you could only receive commissions across the entire range. That is, you take it, throw in a certain amount, and Ethereum costs from zero

[09:22] to 5,000 dollars, and you receive a part of the commission for this entire range. But imagine how paltry it was. That is, I cannot choose the range in which which I will receive a commission. And because of this, I needed a lot of funds

[09:36] to show at least some kind of profitability . Here in the V3 version of the pool, you money will work. Now we'll move on to a specific pool, and I'll show you how it works using an example. Let's try the first pool we come across -

[09:51] VATH and USDT. What is VTH - it is wrapped ether. Some platforms don't allow us to add specific ether to the pool, so we have to wrap it around. That is, roughly speaking, the same, the same vidbog eggs, you can’t say it any other way

[10:06] Ethereum, simply redesigned to work on decentralized platforms. Here below we have indicated the volumes that are traded for this currency pair. A little to the right is liquidity, that is , how much money is in this

[10:19] . Well, we see that liquidity remains virtually unchanged and remains at more or less the same level. The current price of Ethereum is also indicated. Slightly to the right of the commissions that users pay per day , we see that commissions are currently

[10:34] everyone is having problems with crypto now. Nobody wants to trade. According to statistics, volumes have fallen on absolutely all exchanges and for absolutely all flows. Yeah, well, no one pain. A little to the right of the TVL, we have already analyzed it, it is also, ah, approximately at the

[10:49] same level and is held. Let's click the add liquidity button and from told you earlier. The first thing we see is exactly what I told you about the V2 versions of these Pursii. You couldn't choose this range in

[11:03] is, your money worked across the entire range. And thanks to version V3, I can 3.137 to 3.330. That is, I can generally

[11:15] receive commissions within the context of one candle. Can you imagine what kind of exorbitant commissions there would be if people exchanged there? That is, I narrowed my It's possible that there are no other users' requests at all , and people will only be able to buy

[11:28] , and people will only be able to buy Ethereum from me, or, well, range. So the whole trick is that I choose the range in which my money will be traded. So, let's say, for example, I'll take 3470 by the

[11:41] spike of this candle by the shadow and the range, say, below $3,000 2,900. range that I will receive a portion of the Here I can choose the level of this commission . I'll tell you how this will all be different

[11:55] Please subscribe. This will be such an incentive for you. And here I simply choose the deposit amount that I will deposit into this pool. Now I couldn't find my vitiashi for half an hour. Everywhere, damn, this defika is complicated by the fact that the embraced one

[12:10] it can be wrapped for avvii, it can be vtizh, it can be, damn, different, in general, types of ethereum. And because of this, you spend half an hour looking for where everything is. Here I can add only USDT or only Ethereum pool. Well, let's say I

[12:26] click the button to activate VTH, that is, to add to add my Ethereums to the pool. I confirm. and I'll click the activate USDT button. That is, roughly speaking, I give permission for

[12:39] Pancake to use my USD and my Ethereum. I'll click add. My pool will open now. That's it, the check has arrived. Now I can click the add button. They show me information about my pool, commission level

[12:54] add button. Again, confirming the transaction. Here, again, in Defi, transaction confirmations. Some are much more expensive. For example, right now I spend almost 2 dollars on a transaction. Well, in terms of

[13:07] video quality, you will know that it is not free, but you are filming a video for an audience. That's it, now I have one of the pools of pools running. I'll press the liquidity farm button and my positions. Here the positions of my pool that we created together will now open.

[13:23] but most likely it just hasn't been updated and will appear now. Yes, you see, in anticipation and everything passed. And so our position appeared. We see that the APR here is 116% per annum. That is, I set it up so that a very narrow range, a lot of

[13:37] commissions are farmed for me in a certain small range. Well, you don't have to thrown out of range. That is, any movement of Ethereum plus or minus half a percent, and my pool will close and will no longer work. In terms of specifics, yes,

[13:50] what are the risks? The risks are that if you trade your crypto, oh, I made crypto, that is, invest your Ethereum, yes, in the Ethereum USDT pool, when the price of Ethereum falls, you buy Ethereum with your USD , and when the price of Ethereum

[14:05] rises, your Ethereum is slowly sold and you have more USDT. And due to either have less of the crypto you invest, or more. Therefore, in the case where you set a range, let's say, Ethereum up to 3,500, as soon as

[14:19] Ethereum rises to 3,500, all your Ethereum is sold. And if Ethereum flies away there by 5, 10-20 thousand dollars, you will no longer earn as much as you could have earned by simply stupidly holding Ethereum in an account without pools. Therefore, you

[14:32] know them, you need to subscribe to our channel. We also have a VC exchange in the earnings section. Let's switch gears. Well, these are generally rewards from the outdated cake pool. That is, if you have old coins on this

[14:46] decentralized exchange, you can exchange them and receive the same coins that are currently listed and traded. There is also pool syrup. Well, roughly speaking, the same events that take place on

[15:00] decentralized exchanges. You invest tokens in the Kate tokens offered by this exchange. Let's say Ton, Wild, Mavia. it was possible to got listed on all the normal centralized exchanges and showed very good

[15:14] opportunities. The apps are pretty good. Some coins have huge upsides, that is, huge annual percentage earnings, but I don’t advise you to chase them. Here you can also look at the liquidity farm here by

[15:27] APRU. There will be 300% per annum . But what are the chances that this token, this Q, uku [music] or however it is read correctly, will survive until tomorrow? To none. Therefore, choose by TVEL, by

[15:42] money in this pool, and you earn your normal annual interest. small, because these are two stable coins , that is, the price does not change at all, so no one will really pay a commission there . Well, the exchanges are small.

[15:56] Choose popular pools, as I already said, and those that have normal figure out how to use any decentralized platform. And not Any platform can be quickly mastered if you take the

[16:10] time to do so. If you want to spend less time on this and get more profit, subscribe to our channel. If you liked the video, be sure to any questions, I am always ready to answer them. Well, have you been to Denisov

[16:23] Trade's channel? I wish everyone profit. Bye everyone. y