Detailed Instructions

First, you must provide liquidity to a decentralized exchange (DEX) like Uniswap V3 or PancakeSwap. This involves depositing an equal value of two tokens into a specific trading pair (e.g., ETH/USDC). In return, you receive Liquidity Provider (LP) tokens, which represent your share of the pool. These tokens are typically ERC-20 or BEP-20 tokens and are stored in your Web3 wallet (e.g., MetaMask). Before proceeding, ensure you have a sufficient balance of the base tokens and enough native currency (ETH for Ethereum, BNB for BSC) to cover gas fees.

• Sub-step 1: Navigate to the 'Pool' or 'Liquidity' section of your chosen DEX.
• Sub-step 2: Select the token pair and input the amount for each asset. The interface will automatically calculate the ratio.
• Sub-step 3: Approve the token contracts and confirm the liquidity addition transaction. You will see the LP tokens appear in your wallet.

Tip: Use a platform like DeFi Llama to compare Annual Percentage Yields (APYs) across different pools before committing funds.

Detailed Instructions

Your LP tokens are now idle. To earn additional rewards, you must stake them in a liquidity mining or yield farming program. These are often hosted on the DEX itself or on a separate protocol like Beefy Finance or Yearn. It is critical to use only verified, official contract addresses to avoid scams. Always double-check the URL and contract address on the project's official documentation or social media channels. For this example, let's assume we are using the PancakeSwap Syrup Pool for the CAKE-BNB LP token.

• Sub-step 1: Go to the 'Farms' or 'Pools' section on PancakeSwap.
• Sub-step 2: Locate the specific farm for your LP token pair (e.g., 'CAKE-BNB LP').
• Sub-step 3: Click 'Enable' or 'Approve' to grant the staking contract permission to access your LP tokens. This requires a wallet confirmation and a gas fee.

Tip: Bookmark the official app URL (https://pancakeswap.finance/farms) to prevent phishing. Never enter your seed phrase on any website.

Detailed Instructions

After approval, you can now deposit your LP tokens. This action locks your tokens into a smart contract, making them eligible for reward distribution. The interface will show key metrics like Total Value Locked (TVL), APY, and your potential daily earnings. The APY is dynamic and changes based on the pool's rewards emissions and the amount of liquidity staked. Execute the staking transaction and wait for confirmation on the blockchain.

• Sub-step 1: On the farm page, enter the amount of LP tokens you wish to stake. You can stake your full balance by clicking 'Max'.
• Sub-step 2: Click the 'Stake' or 'Deposit' button and confirm the transaction in your wallet. The gas fee will vary based on network congestion.
• Sub-step 3: Verify the transaction success on a block explorer like Etherscan or BscScan. Your staked balance should update on the farm interface.

codeCopy
// Example of a simplified staking transaction call to a contract
await stakingContract.stake(amountInWei);

Tip: Consider leaving a small amount of the native token (e.g., 0.01 ETH) in your wallet to pay for future unstaking transaction fees.

Detailed Instructions

Once staked, you will start accruing rewards, typically in the platform's native token (e.g., CAKE). These rewards compound over time, meaning you can earn interest on your interest if you reinvest them. You must manually harvest or claim your rewards, which is a separate on-chain transaction. Some platforms offer auto-compounding vaults that handle this automatically for a small fee. Regularly check the pool's details, as APY rates and reward tokens can change based on governance decisions.

• Sub-step 1: Return to the farm page to see your 'Earned' rewards balance.
• Sub-step 2: Click the 'Harvest' button to claim your rewards to your wallet. Confirm the transaction and pay the gas fee.
• Sub-step 3: You can now hold, sell, or re-stake your reward tokens. To re-stake, you may need to convert them into more LP tokens via the liquidity pool.

codeCopy
// Example function to claim rewards from a staking contract
await stakingContract.getReward();

Tip: Use a portfolio tracker like DeBank or Zapper to monitor all your staked positions and rewards in one dashboard without manual checking.

Detailed Instructions

When you wish to exit, you must first unstake your LP tokens from the farming contract. This is often a two-step process: withdrawing the staked principal and then claiming any remaining unharvested rewards. After unstaking, you have your LP tokens back in your wallet. To access your original underlying assets (e.g., ETH and USDC), you must return to the DEX's liquidity section and remove liquidity, burning your LP tokens in exchange for the two constituent tokens. Be aware of impermanent loss, which may mean you receive back a different ratio of tokens than you deposited if prices have shifted significantly.

• Sub-step 1: On the farm page, click 'Unstake' or 'Withdraw'. Enter the amount or select 'Max'.
• Sub-step 2: Confirm the unstaking transaction. It's good practice to harvest any pending rewards in the same transaction if the contract allows it.
• Sub-step 3: Go to the DEX's 'Liquidity' page, find your position, and click 'Remove'. Choose to remove a percentage (e.g., 100%) and confirm the transaction.

Tip: Consider the timing of your exit. Unstaking during periods of low network gas fees can save you money, especially on Ethereum.