Welcome to this post, where we are going to see one of the best opportunities for farming in the Solana network with Solfarm.
Although it is a project that is in beta, it has very interesting options if you want to staking any Solana network project and get the most out of it. Solfarm for the moment, has the same farms that you can find in Raydium, but as there are new projects in the Solana network, you will also be able to find them in solfarm to optimize your farm.
What is Solfarm?
Solfarm optimizes the farming of your tokens, doing auto compounding every hour, which generates a higher profitability than having them staking on raydium or other platforms without this functionality. Every hour, solfarm reinvests what each pool has generated, in order to offer its users a higher return on their investment.
If you compare the annual percentages that you can generate in raydium vs. solfarm, you will see that solfarm always has higher returns. In addition, when staking in solfarm, you will receive the token of its platform in your wallet. As you can see in assets, the tulip logo appears, with an annual % that you receive. The best part is that you receive the token directly in your wallet, no need to withdraw or withdraw your funds or your staking benefits to receive it. So you will see that every day or few days, more tulip appears in your wallet.
In a few days we will see how to deposit your funds, with the step-usdc pair I currently have 50 dollars to test how the platform works before placing a larger capital.
Before this though, it’s important to know the risks. As you can see, the site itself warns us that it is in beta, and that the code is experimental. As the solana network is very new, it is common for projects to still be in an alpha or beta phase, as is the case with solfarm. Although this is something to keep in mind, it does not mean that they will be hacked or that you will lose your funds. But you have to be more cautious than other more popular platforms such as raydium. On the other hand, solfarm is backed by solana and raydium, which give more security that it is not a totally isolated project and that it does not have the support of the main cryptocurrency of the platform, Solana. Still, my recommendation is to follow all their social networks and start by placing little capital to see how it works and possible problems.
Now let’s go to the vaults. Here, at the time of the video we find the possibility of staking raydium, and everything else are LP Tokens that you can also stake inside raydium. In assets you will see the LP or cryptocurrency to stake, right next to it, the % APR or annual return that you receive in TULIP for staking in the Solfarm platform. In wallet balance and deposit is what you have deposited and have in your wallet. And then we see the daily, weekly and annual returns. Actually I only look at the annual profitability, but it is also good to know what % it generates daily, to be able to check if when you deposit it is really giving you that performance.
To deposit our funds the first thing we must do is to connect our wallet. Click on connect wallet and in my case I use the Sollet extension, click on connect and that’s it. Now let’s see the step by step in the case of step-usdc to create the LP and stake it in Solfarm.
Step by step
The first thing is to have Solana or USDC in your wallet. In my case, I am going to use $50 for this example. I already have Solana in Binance, but if you don’t you can buy it and in my channel you will find a video on how to do it.
If you don’t have an account with binance, just below you can find a link to create one. For me it is the best platform to buy solana and other cryptocurrencies and withdraw them to my wallet.
Withdraw Solana from Binance
With Solana in binance, we go to wallet and spot wallet. Here we search for solana and click on withdraw. We open our wallet, in my case sollet extension which is the most used, click on solana and receive. Copy the address and paste it in binance. We indicate the amount and click on withdraw. Enter the passwords and codes requested, and in a few minutes you will see your solana in your wallet. You will see that the solana network is really fast.
With solana in your wallet, go to raydiumy in your swap. We change the amount of solana we want to use in USDC. In from indicate solana and in to USDC. Click on swap and confirm the transaction in metamask. Now we must change half of our usdc to step. Step is only paired with USDC, so you will not be able to buy it with Solana. Because of this, it is important to move everything you want to use first to USDC.
How to create an LP Token in Raydium
Enter half of your USDC in from and STEP in to. Click on swap and confirm in your wallet. With the same amount of STEP AND USDC, let’s go to liquidity. Here in input you must indicate USDC AND STEP. Click MAX on either of them, and if you have the required amount of both tokens, click on supply. Confirm your transaction in your wallet and you will have it in your wallet.
With your LP Token in your wallet, go back to solfarm. Find the farm of your LP Token, in my case step usdc and click on it. Click on deposit and confirm in your wallet. With this, you will have your LP Token staking and generating more tokens passively. If we look at deposit, in the information i you will see the rewards since the last deposit and withdrawal with the equivalent in dollars. This is very useful to see what you have generated so far.
Once you have tokens in solfarm stakeando, you will be able to filter at the top to show you only where you have tokens and you will be able to see them faster. For now it is not very useful because there are not many pairs, but if in the future they add many more pairs, the filter will be useful to go directly to your farms.
When you want to withdraw your funds, simply go to your farm, indicate the amount you want to withdraw and click withdraw. Confirm in your wallet, and you will have your LP Token back in your wallet. If you want to have the tokens without the LP, go back to liquidity, below you will see in your liquidity your LP Tokens in your wallet. Click on remove, if you want to remove everything, max, confirm and confirm the transaction in your wallet. You will have step and USDC separately again.
Remember to inform yourself about the impermement loss before doing any staing of LP Tokens to understand the risks and how it works.
I hope this video has helped you to learn about one of the best farming alternatives in Solana. If you don’t have an account with binance, you will be able to create one just below.