Another liquidity pool, another opportunity to earn yield on pxETH. Redacted launched a new partnership with our friends at PancakeSwap. Keeping you fully in the loop, Intern has your back. I'll show you how to use PancakeSwap to extract as much yield as possible out of your pxETH.
Please note: This guide is not a recommendation and interacting with DeFi protocols can be risky. Please do your own research and use your best judgment. Best of luck out there!
Overviews
Before we dive in, let's review all the details to ensure you're well-equipped before aping.
What is pxETH?
pxETH is one of two tokens associated with Pirex ETH – the liquid staking solution for ETH that will power the Dinero protocol. Users receive pxETH when they deposit ETH into Pirex ETH. It’s liquid, fungible, and pegged 1:1 to ETH. Functionally, you can think of it as wrapped ETH (WETH).
It’s worth noting that the ETH underlying pxETH is staked in Dinero validators, but pxETH does not earn ETH staking yield. Check out this guide for more information on Pirex ETH’s two-token design and how to earn staking yield. pxETH is for adventurers, not humble stakers.
What is PankcakeSwap?
PancakeSwap, a decentralized exchange (DEX) and automated market maker (AMM) protocol on the Binance Smart Chain and Ethereum that facilitates token trading, yield farming, and liquidity provision. For our purposes, we’ll be using the pxETH / ETH pool on Ethereum.
Obtaining pxETH
Before getting started, you’ll need to get your hands on pxETH. You can mint some with ETH you already own (guide here) or you can buy it through decentralized exchanges like PancakeSwap, Curve, or Balancer.
If you’re looking to mint pxETH, navigate to the mint page here. The mint screen will provide you with two options:
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Mint pxETH with ETH
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Deposit to apxETH vault with ETH
If you want to earn ETH staking yields, stop reading this guide and deposit to the apxETH staking vault. But, if you’re looking to earn gauge rewards like a real farmer, then move forward with minting pxETH.
Remember: pxETH does not earn staking yields. Instead, you’ll earn yield on pxETH from opportunities like the ones outlined in this guide.
Earning on PancakeSwap
Using the pxETH / ETH pool
The pxETH / ETH pool is just like our first Intern blog post. Liquidity providers can deposit liquidity and stake their positions in order to receive CAKE rewards.
Proving Liquidity on PancakeSwap
After minting pxETH, go here to the PancakeSwap homepage.
Once you’re on the home page, you’ll have access to all of PancakeSwaps products. Head over to the “Earn Page” and click on the “Farms” link. Once on the Farm page, type “pxETH” in the search bar and you’ll see the list populate with the pools available to you:
- Connect your wallet if you haven’t already, then click add liquidity within the LP tab
This prompt (image below) will appear after clicking on add liquidity. Select the amount of pxETH you would like to deposit, this will auto adjust the amount of ETH that will be deposited. I selected 0.1% for my assets range.
Note: Similar to UniSwap V3, Pancake offers ranges for when the assets are traded and indicating at which range they will be earning fees. Keep in mind this is an LST, being close to the peg is vital. However, please do your own research when selecting your range.
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Enable your pxETH, this will prompt a spending amount within Metamask. Confirm your spending amount and sign the transactions.
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Click “add” to provide your liquidity. This will prompt you with other transactions to add your assets.
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Finally, click stake, this will prompt you with a transaction. Sign and stake your position.
Note: Do not forget to stake your liquidity pool position, or you will not receive CAKE rewards.
Rewards on PancakeSwap
Once you do that, you’re set. You will now earn CAKE rewards for adding liquidity and staking your position with pxETH/ETH.
Make sure you monitor your positions and actively harvest rewards as needed. Your CAKE rewards will be available for harvest as they’re earned over time.After harvesting your yield, you can hold onto your rewards or sell them for something else such as BTRFLY, more pxETH, or whatever.
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