How To Stake BNB on Beefy Finance (Binance Alternative)

Hi, this article will show how I am staking my BNB coins on the Beefy Finance platform to earn double digit compounding interest automatically. This is different from my previous post about staking with Trust Wallet because you don't need a minimum amount of BNB to stake, the interest compounds, and does so automatically.

If you don't know what Beefy Finance is, it is a decentralized finance (DeFi) platform that optimizes earned interest when users deposit various digital assets on the platform's vaults.

In more simple terms, I can deposit some BNB into one of the many vaults and earn relatively high percentage interest on that deposit. The way in which Beefy Finance optimizes the earned interest is by their smart contract strategies.

It also works on many different blockchains like Binance Smart Chain, Avalanche, Polygon, etc.

How To Stake BNB Step-By-Step

Prior to staking on Beefy Finance, there are just a couple of things that are needed:

BNB coins work on the Binance Smart Chain so I'm going to select BSC as the network. Here I'm connecting my Metamask Wallet with the Beefy Finance app.

Beefy automatically detects the amount of unstaked BNB coins in my Metamask wallet. Here, I have about 0.18 BNB coins. Beefy currently, only has one vault for me to stake my coins in and it offers about a 17% APY interest rate that changes with time. Also, it shows the current total value locked on the Beefy platform which is the total amount staked by Beefy's users. Total value locked (TVL) a measure of the health of a DeFi platform.

The last thing to note here is that for this vault, Beefy uses the Venus platform to earn the yield. Venus is another DeFi platform that is a money market. It serves as a cryptocurrency market for lenders and borrowers. Beefy interacts with Venus using it's strategies to earn yield for me.

The next steps to staking are simple. Just input the amount I want to stake and then click "Deposit". On Beefy Finance's platform, I can remove my funds whenever and they don't need to be locked for any specific amount of time.

Once I click "Deposit", Metamask will pop up to ask me to confirm my transaction. Once confirmed, my BNB coins are deposited in the Beefy vault. I can view the transaction on the BSCScan website as well.

You can see here that the Beefy Finance smart contracts executed a bunch of transactions to convert my BNB to Wrapped BNB and then executes whatever their strategy is on the Venus platform. The total amount of gas fees I paid for this staking was about $3.

So back on the Beefy Finance dashboard, I can see my deposited balance and the APY I'm earning on it.

And that's it. Now, I'm passively earning interest on my BNB coins. Also, this interest compounds automatically and is optimized by Beefy Finance's strategies. I don't need any minimum amount of BNB to start either.

Besides the automatic compounding and minimum requirements, the difference with this staking strategy and the Trust Wallet method is it is a bit riskier. I have to trust that the Venus platform as well as Beefy Finance are legitimate projects and won't rug pull my funds. Also, it's not really staking from a technical sense as my BNB funds are not used to validate the network transactions. They're just being lent out on the Venus platform.

Here is the YouTube video version of this blog post: