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What Is SWAP FARMING? Free BNB + Binance Liquid Swap Explained 2023
Binance Swap Farming Explained
Earn a 50% rebate on fees in BNB when you use Binance Liquid Swaps.
Unlike fee rebates on the Binance spot exchange, which require you to use a referral code and/or hold 500 BNB, Liquid Swaps return up to 50% of all fees spent on most trading pairs regardless of whether you use a code or hold BNB or not!
This article teaches you everything you need to know about getting paid in BNB to trade on Binance Liquid Swaps (AKA “Swap Farming”).
Base level fees for Swaps are 0.2%, but you can bring them as low as 0.06% by trading volume. Learn more about Binance Liquid Swap Fees.
What is Swap Farming?
Swap Farming is when you maximize your BNB rebates by trading using Binance’s Liquid Swaps platform (Binance’s Automated Market Making AMM platform). Liquid swaps are a simple and easy-to-use alternative to traditional exchanges that function the same way decentralized exchanges such as PancakeSwap and Uniswap do.
That is to say, anyone can put up both sides of the book by providing liquidity to a given trading pair’s Liquidity Pool, and traders then take liquidity from either side of that pool (ideally without a ton of slippage, especially for small orders).
Feel free to learn more about providing liquidity to a pool and liquidity farming (https://www.binance.com/en/swap/pool). For now, let’s put liquidity farming aside and focus on liquid swaps and swap farming.
First, let’s cover how to farm and how to maximize your BNB returns.
How To Do Swap Farming With Binance Liquid Swaps
This section will walk you through setting up a Binance account and using Binance liquid swaps so you can farm BNB via swap farming.
Please note that to use Binance Liquid Swaps, you need to set up a Binance account first. So if you don’t have one already, use our Binance Liquid Swaps referral link https://www.binance.com/en/swap?ref=GRYRDBZW to sign up.
After you set up your account, don’t forget to verify so you can use all of Binance’s features.
- Navigate to the Swaps Page
You don’t have to to sign up for any additional platform to preform swaps, liquid swaps are available to all verifed Binance users, simply navigate to the Swaps by clicking [Trade] -> [Swap Farming].
If you want to choose your swap from a list, or if you want to add or remove liquidity to a pool, you can also then click over to the [Pools] tab.
- Choose Your Trading Pair
Click the checkbox next to “Filter all tokens with rewards” to ensure you swap a pair that offers a rebate. You can also click “view all” to see a list with the rebate amounts here.
After you confirm what pair you want to trade, select the token you want to trade [From] and [to] on the order form.
- Enter the Amount You Want to Swap
Enter the amount you want to swap [from]. Alternatively, you can enter the amount you want to swap [to].
The other part of the form will be filled in automatically, so the choice is up to you.
- Make the Swap
Review the potential slippage to make sure you won’t lose money to the price moving, and then hit the [Swap] button to confirm the trade.
Please note slippage is the percent your order is estimated to move the price. Large orders may cause a lot of slippage. Try inputting multiple small orders instead of a large order to avoid slippage. You can also adjust slippage by pressing the gear icon in the order form.
- Claim Your Swap Rewards
You can claim your swap rewards after every swap, or you can let them build up. To claim your swap rewards, click [Claim Rewards]. Your swap rewards will then be sent to your Spot Wallet.
You can always see your Swap and Claims history under the [History] tab. This is a useful way to keep track of the trades you made and all the BNB you’ve earned.
Maximizing Your BNB With Swap Farming
Now that you know how Swaps and Swap Farming works, let’s focus on how to increase your returns.
In short, the best way to maximize returns with Swap farming is:
- Trade only pairs that return 50% BNB.
- Pool your BNB or use another Earn product to earn a yield on your BNB.
- Optional: Make favorable and frequent trades.
First off, the easiest thing to do above is to focus on trading one of the many pairs that offer the full 50% reward. Unless you have a really good trade, that 50% rebate is the key to swap farming.
Next, we highly recommend taking the BNB you earn and placing it in another Binance Earn instrument to earn a yield.
You can automatically place it into flexible savings, or you could tactically place it in a pool with a BNB-based pair like the BNB pool shown in the image above which was paying 12.56% APY at the time. Or, you may have another favored Earn method. Each of these options has different risks, but going after that pool with the highest yield is always attractive if you think the potential impermanent loss will be worth the yield.
Lastly, you can stack a ton of BNB if you can make favorable and frequent trades. Let’s say you make a profitable trade, even if not by a lot. This will still net you BNB as a reward. So, in theory, you can place many favorable trades and earn yourself a constant supply of BNB, which would result in profit as long as your net trading outcome was positive after fees were paid.
While making constant trades with a net positive outcome isn’t easy, there is even API support for liquid swaps for those who have the right automated tools. So this is worth mentioning.
Swap farming is all about using liquid swaps to earn BNB while you trade. At worst, this is just a simple way to trade, where extra fees paid are returned as BNB. At best, this is a bit of a Binance Earn-based machine you can use to grow your BNB stack while you make trades that are going to benefit you anyway.
If you have any questions or comments, or if you want to share your own tactics for stacking BNB, make sure to drop them below!
Lastly, don’t forget to look into taking the other side of swaps by providing liquidity!