DeFi wMUE lessons

DeFi wMUE lessons

Here are some simple, easy to follow lessons introducing you to DeFi (Decentralised Finance) & how to convert your MUE (MonetaryUnit token) to wMUE (Wrapped MUE) for easy access to DEXs (Decentralised exchanges), DeFi , yield farming , yield harvesting and trading on DeFi.

Lesson 01

  1. Install MetaMask. You will need a wallet to store the tokens on Binance Smartchain. The most flexible and most used wallet at this moment is MetaMask. I have chosen Binance Smartchain and not Ethereum because of the transaction fees. At BSC you pay a few cents, on ETH you pay many dollars fee for each transaction.
  2. Go to : https://metamask.io/download.html
  3. Download and install the extension for your browser
  4. When making an account and create keys / addresses the app will give you a 12 word seed recovery backup.   Copy the words to have a safe backup and store them in a safe place.
  5. When you have working extension in your browser, you can move on to lesson02

Lesson 02

  1. Configuring Metamask for Binance Smartchain
  2. When you install a fresh version of Metamask it is configured for the Ethereum blockchain by default. We are not going to use Ethereum chain in these lessons because of the very high transaction costs of that chain at the moment. Binance Smartchain works exactly the same. It uses the same Ethereum Virtual Machine (EVM) but has much lower fees.
  3. To configure Metamask for BSC go to this site and follow the instructions : https://academy.binance.com/en/articles/connecting-metamask-to-binance-smart-chain
  4. When it is done, Metamask should look like this

5.  Now you are ready to go and continue with lesson03

Lesson 03

On any public blockchain you will need to pay something if you want to do something on that chain. On Binance Smartchain you pay these fees in Binancecoin (BNB). You can buy BNB on Binance exchange of course. But there is something you need to know. When you use Binance Smartchain the coin you use is a BEP20 token. There are other type of tokens for the same coin, BEP2 for example is also available for Binance coin, and is used on Binance DEX , the decentralised exchange of Binance.

Get yourself some BNB coins , a small amount will work for a while , like 0.01 BNB, that equals around $5. And send it to your metamask wallet address.

Lesson 04

At most DEFi swap websites / apps, you are able to create any market you want. As long as there exist tokens of it on the right chain. We are looking at Binance Smartchain. With MUE we have created wrappedMUE or wMUE . A token that can be swapped to the original coin any time,, visa versa through https://wrapping.services/get/mue/. So I swapped some of my MUE coins to wMUE tokens. And created a market :I even created more markets with wMUE and other assets.

Anyone who wants to trade wMUE can do it now on YieldFields or Pancakeswap

But it is even better. Any coin with liquidity on YieldFields or Pancakeswap can be traded with wMUE.  I did not make markets for them, but the smartcontract routes the way from any coin with liquidity to wMUE if you want that

Here you see the route to trade 2 coins that are not paired by a liquidity provider

To make wMUE visible you should add the token yourself by selecting "import token" at the bottom of assets in the MetaMask wallet. The contract number is 0x00abaa93faf8fdc4f382135a7a56f9cf7c3edd21.

This way you can add any token on Binance Smartchain. if there is a Liquidity Pool already you can trade it, if there is no LP you can make one.

You will also need to add BUSD (Binance USD stable coin) to your wallet.  The contract address is0xe9e7CEA3DedcA5984780Bafc599bD69ADd087D56 just follow the same steps as for wMUE

Lesson 05

Smart contracts are opensource most of the time. Thus anyone with some coding skills can copy and create a swap platform for their own. I am a user not a coder. So I am using swap sites to trade. Just try it. And experience the smooth working.

Go to the exchange tab

Search for FIELD and buy 1 FIELD, FIELD is the token of YieldFields. When you complete the buy transaction , the coins bought are automatically sent to your MetaMask wallet.

Lesson 06

Staking at DeFi websites

In a previous lesson you learned about earning by providing liquidity. Now we look at staking or harvesting coins.

In the picture below you see a screenshot of the "Pool" page on pancakeswap.

In this example you send the Cake you own to the website and earn more cake at a rate of 218.35 percent a year

At anytime you can harvest the earned coins and also the original deposit if you want.

New coins on pancakeswap also got introduced with an option to earn them by staking cake.

Lesson 07

It is nearly a year ago that i wrote the first 6 lessons.

We came to a point that it is becoming harder and harder to earn by just holding a defiswap token.  

So I think it is relevant to write something about yieldfarming.

At most sites you can find it under the name "Farms"An example of a yield farm on yieldfields, here you can stake ETH-BNB liquidity pool tokens. You are earning in 2 ways, fees from trading, and a reward in Field tokens.

You should understand that when ETH is rising, this liquidity pool sells ETH , and gets more BNB. Arbitrage trading is levelling the value of both coins till the value of ETH and the value of BNB in the pool are equal again , this is generating trade fees. So the value of your investment and the ratio ETH - BNB is changing all the time.When adding liquidity , you best use an existing trade pair, then the ratio is already set , and you don't make a mistake like adding a pool with 1 BNB and 1 USD.

Nothing in crypto is without any risk , either is yieldfarming . But I think it is fun to farm with small amounts like $25 to $50 on high yield farms on yieldfields .

You might wonder, why yieldfields? They don't optimise the yields all the time, and don't remove farms unless there is a very strong reason for it. So you have the time to earn back your investment with the rewards.

I would say, search a farm (coin) with high yield you like. Invest a small amount you can afford to loose (like anything in crypto) start farming. Next year look what you have earned with it .

These lessons are taken from "The lessons" discord by Julius https://discord.gg/VXQMkm8XEP

Our defi platform; https://yieldfields.finance/

Our token wrapping site; https://wrapping.services/

To swap MUE to wMUE; https://wrapping.services/get/mue/

Swap multiple native coins to wrapped tokens here; https://wrapping.services/#swap