Binance is returned with the latest way for users to trade and swap their coins while receiving the best prices on the marketplace. Swap farming uses the AMM (automated market maker) model to aid you in safely and easily swapping cryptocurrency pairs from a group of tokens and coins.
Binance Swap Farming runs on lower fees and provides higher returns (with stable rates). It allows you to earn BNB rewards equal to 50 percent of the transaction charges returns in BNB upon swapping. Binance Liquid Swap (based on low commission) has inadequate spreads; however, it allows you to add tokens to the collection as a market maker.
You can receive interest despite getting a share of the transaction charges (for pooling) by doing the same. Swaps perfectly go with stablecoins due to stable rates with lower charges if you make big transactions.
Binance swap farming
Liquidity pool-based Binance swap farming has two tokens in every pool, and the comparative amount of these two tokens fixes its price. Exchanges can happen once there are tokens inside the collection. By providing liquidity to the pool, revenue is created because the tokens staked also get commissions from pool transactions.
You get adaptable savings interest. However, there is still a risk factor in the Binance swap. If the price of tokens changes significantly, the shareholders of the pool will fall short of receiving the expected profit.
Automated market makers (AMM) allow you to exchange your coins from a liquidity pool instead of directly with another person. Token prices are pooled together, and the cost of each token is decided by its ratio. One user could provide BUSD or BNB tokens in equivalent quantities to the BUSD-BNB pool, and then someone else could utilize these tokens for swapping between BUSD and BNB for a price.
How Swap Farming Works
To use the swap farming efficiently and claim the rewards, you must access Binance swap farming through the “Trade” option on the main screen. Here is how the swap farming works –
Swap Farming Workflow (website version)
Create or log in to your Binance account. now, visit the “Trade” option, and select “Swap Farming.” Now, go to the Binance Liquid Swap page. Here, you will notice two tabs: “Remove” and “Add.”
Using the “Add” option, you can easily add liquidity by choosing the appropriate pool and token to deposit.
Using the “Remove” tab, you can take out the tokens from pools by choosing the whole collections that got token deposits. Also, select the token that you wish to withdraw.
Swap Farming (mobile version)
To access swap farming on mobile, just click on the “More” option in the application. Now, click on the “Trade” and then “Swap Farming” to access the Swap Farming section.
1. Process conclusion and Token selection
Choose the token you wish to swap from the menu’s “To” and “From” sections. After that, enter the swap amount. After verifying the amount and token, the system will show the market rates, and then the fees and the slippage get calculated automatically.
Also, you can choose a slippage range in which the swap doesn’t advance until it is inside the set price range.
Then the system will show the effective fee (estimated fee rebate and swap fee), slippage, and price. Transaction slippage is adjusted in real-time according to the market conditions. Though, the shown amount might not be the final transaction slippage rate.
Click on “View All” to see all tokens (without or with rewards). On the other hand, you can prefer filtering and showing all tokens with rewards. Just click on the “Swap” option to finish the process. Exploring the Binance’s less-cluttered Swap Farming interface is more than simpler than Spot trading, considering the easy-to-use and intuitive Swap Farming UX.
How to check the swap history
To check the history of swap history, just log in to your account and then click on the option “Earn .”After that, go to the “Liquidity Farming.”
Now, click on the “Overview” tab and then visit “Show My Portion.” After doing the same, you can easily see the overall portion details and unclaimed rewards.
How to claim and get the rewards
1. Presently, just a few tokens meet Swap Rewards of Binance Swap Farming criteria. To check all the eligible swap pairs qualifying for a 50% fee refund in BNB, visit the option called “View All.”
The Swap rewards’ calculation is conducted according to their order swap rate, in which the transaction fee refund is swapped to BNB. Then, the transaction fees are credited to your Spot Wallet.
2. Choose the option “Filter-all-tokens-with-rewards” to see only Swap Rewards eligible tokens. Choose your preferred token and type the required amount.
NOTE: ensure choosing the qualified tokens for Swap Rewards before validating the swap, or you cannot get the BNB refunds.
3. Click on the option called “Swap” and verify the amount and token.
4. The swap rate will be displayed while the estimated Swap Rewards, fee, and the slippage in BNB will be calculated automatically. Just click on the “Swap” to start.
After the completion of the swap, you will receive the confirmation. Just click on the “View Swap History” to check the order, or you can click on the option “Back to Swap” to start another swap.
Key benefits of Swap Farming
There are plenty of advantages of Swap Farming. These basically consist of the following –
- Clutter-free and user-friendly interface
- Minimal slippage
- Support for more than 180 pairs.
- More than 50 percent of fee refund in BNB
- Less dodgy for HFTs (high-frequency traders)/arbitrage users
- Less dodgy as against DeFi swaps (SAFU, less risk of hacking, safe platform)
What are the risks involved?
Primarily, a higher amount of trading cause higher slippage fees. Generally, a swap or trade consists of a possible slippage risk that might cause a price change from your real prospect.
During Swap Farming, that risk is decreased because of the industry-leading liquidity of Binance. Swap Farming provides more than a hundred trading pairs, and that too with deep liquidity. While Swap Farming usually provides usual Binance-specific benefits, trader money is also Secure Asset-Fund for Users (SAFU).
That implies that the possibility of loss is nearly none in Swap Farming. There are higher rewards with no risk, which is truly enticing. Accessing external dApps (decentralized applications), like AMM services, also will not be essential. You can easily access the swap farming details with a single click from the Binance homepage.
