Frax Finance & PancakeSwap liquidity program distributes 1000 FXS and 250 CAKE Rewards every 60 days to PancakeSwap FRAX-FXS Pool on Binance Smart Chain.
1- How to get FRAX & FXS tokens?
- connect your MetaMask extension to UNISWAP, then purchase the desired amount of FRAX & FXS you like to add to the liquidity using the links below:
FRAX : https://app.uniswap.org/#/swap?inputCurrency=0x853d955acef822db058eb8505911ed77f175b99e&outputCurrency=ETH
- Or you can mint FRAX on our webapp : https://app.frax.finance/mint , you will need USDC + FXS to do so.
- FXS : https://app.uniswap.org/#/swap?inputCurrency=0x3432b6a60d23ca0dfca7761b7ab56459d9c964d0&outputCurrency=0x853d955acef822db058eb8505911ed77f175b99e
(NOTE : you will need equal dollar value of both FRAX and FXS, for example if you want to add 100 FRAX you will need 100$ worth of FXS).
2- How to bridge your FRAX & FXS tokens to Binance Smart Chain (BSC) ?
- Now you have both FRAX & FXS in your eth wallet you will need to bridge them, There are some options for migrating to Binance Smart Chain (BSC)
Binance Exchange Withdraw to address (only for FXS)
Binance Bridge (only for FXS)
Multichain Bridge (only for FRAX )
in this example we will use the Multichain & Binance bridge to migrate FRAX & FXS to BSC.
- Head to Multichain bridge link: https://multichain.xyz/swap and connect your MetaMask wallet.
- You will arrive at this page:
- Choose FRAX (ETH) in the “from” menu and FRAX (BSC) in the “To’’ menu, then write the desired amount you wish to bridge to BSC then click “Transfer”
- A MetaMask transaction will pop-up “Confirm” it.
- A pending deposit transaction will appear wait until it is finished.
- Now your FRAX tokens are bridged, you need to bridge your FXS tokens also.
- Head to Binance Bridge link: https://www.binance.org/en/bridge and connect your MetaMask wallet.
- You will arrive at this page:
- Choose FXS from the drop-down menu, write the desired FXS amount you want to bridge, and add the destination address then click “Next”.
- click “Confirm”.
- click “Submit transaction via MetaMask”.
- A MetaMask transaction will appear “Confirm” it.
- wait until all confirmations are passed to receive FXS tokens in your BSC wallet.
3- How to Switch your MetaMask wallet to Binance Smart Chain (BSC) Mainnet Network?
- To switch your MetaMask to Binance Smart Chain (BSC), you will find at the top “Ethereum Mainnet” Click on it to open the drop-down menu.
- At the bottom of the list, you will find “Custom RPC”. click on it.
- The window below will appear, Enter these details and then Click “Save”:
Network Name: Binance Smart Chain
New RPC URL: https://bsc-dataseed.binance.org/
Block Explorer URL: https://bscscan.com
You are now connected to the Smart Binance Chain!
4- How to add liquidity to FRAX-FXS Pool on PancakeSwap?
- your MetaMask wallet is Now connected to Binance Smart Chain, you will need to add liquidity on PancakeSwap.
- Please head to PancakeSwap add liquidity link and connect your MetaMask wallet: https://exchange.pancakeswap.finance/#/add/0x29ced01c447166958605519f10dcf8b0255fb379/0xde2f075f6f14eb9d96755b24e416a53e736ca363
- you will arrive at this page :
(NOTE : You will need BNB in your wallet to spend for gas).
- Select the amount of FRAX you wish to add to the liquidity pool, PancakeSwap will automatically calculate the equivalent value in FXS to be added, we will add 750 FRAX + 96.2353 FXS.
- Click “Approve” for both FRAX and FXS spendings, for each Approve a MetaMask transaction will pop-up. Confirm the transaction, and wait between each transaction.
- Once FRAX & FXS are approved, click “Supply”:
- Click “Confirm Supply”:
- A MetaMask transaction will pop-up. Confirm the transaction:
- Wait for the transaction to be completed.
- you will receive FRAX-FXS LP tokens, and PancakeSwap will show your liquidity position here:
Step 5 (Staking)
- Head to our Staking dashboard Link: https://app.frax.finance/staking
- you will arrive at this page click “Connect Wallet”.
- Choose [BSC] PancakeSwap FRAX/FXS pool from the drop-down menu.
- Now your LP tokens should appear in the deposit section, click on “Available” to add them.
- You can choose between Unlocked and Locked staking, as it shows below, the Normal APR is 102.21% for unlocked staking , and Max APR is 306.63% for 60 Locked staking.
- In this example we will use a 60 days Lock.
- Click “Stake”
(NOTE : APR is subject to change depending on TVL, Price & Collateral Ratio)
A MetaMask transaction will pop-up to Approve your CAKE-LP tokens spending, Confirm the transaction.
A second MetaMask transaction will pop-up to Stake your CAKE-LP tokens, Confirm the transaction.
Congratulations, you have successfully provided liquidity, you should NOW Start receiving FXS & CAKE REWARDS!
About Frax Finance
Frax is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. The stablecoin (FRAX) is named after the “fractional-algorithmic” stability mechanism. The ratio of collateralized and algorithmic depends on the market’s pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio.
FRAX : is the stablecoin targeting a tight band around $1/coin.
Frax Shares (FXS) : is the governance token which accrues fees, seigniorage revenue, and excess collateral value.