A Guide to Getting The Most out of Piggy Finance
Piggy Finance, one of the newest yet most stable borrowing and lending solutions in DeFi, offers everyday users the easiest and most lucrative way to get the best out of their $BNB.
A common misconception surrounding DeFi is that it’s complicated and time-consuming to get started. In this guide, we’ll show you how simple it is to use your $BNB as collateral on the Piggy Finance app — all it takes is a moment to start growing your wealth.
Before You Start
Piggy Finance works by offering users decentralized and interest-free loans against $BNB used as collateral. Loans are paid out in $PUSD, a USD-pegged stablecoin.
Connect your wallet to Piggy Finance using one of the currently supported options: MetaMask, Binance Chain Wallet, and WalletConnect. Once that’s done, you’re all set to start taking out loans. Simply open a PiggyBank, and choose how much $BNB you want to put into it, and in return you’ll get $PUSD transferred into your wallet. The minimum loan amount is 200 PUSD.
One important note: although Piggy Finance offers a lowest collateralization ratio of 110%, it is recommended to choose a higher ratio in order to protect your account from potential liquidation or redemption.
Once you’ve got your $PUSD in your wallet, you now have to two key options to start giving your wealth wings!
Option 1: Swap $PUSD to $BUSD
It’s easy to swap $PUSD to $BUSD to participate in one of the many opportunities available there: from saving, to investing, to staking.
Head over to DODO, a decentralized exchange (DEX) that offers a multitude of options for you to make swaps and provide liquidity.
Make sure you’re on the BSC network, and you’ll see $PUSD as one of the options on the ‘Pay’ dropdown menu. Select $BUSD as the option on the ‘Receive’ dropdown menu. Check the details of your order once more, then click ‘Confirm Order’ to have the $BUSD transferred into your wallet.
With $BUSD, the sky’s the limit. Ask yourself what you want to achieve with your funds. Do you feel like saving is safest ? You can consider subscribing to either a Flexible Savings or Locked Savings account on Binance, allowing you to lock your $BUSD while earning interest. Or perhaps you want to stake your $BUSD to achieve higher rewards? Then consider looking into some attractive yield farms such as Autofarm or Beefy Finance. Staking your $BUSD allows you to seamlessly earn high rewards.
For even more inspiration on what to do with your newly-received $BUSD, check out vfat.tools, a no-nonsense dashboard that shows many of the most popular farms and helps calculate your potential APY.
Option 2: Stake $PUSD to enjoy passive rewards with high APY… or add liquidity within a DEX!
But wait! You can also start earning those sweet, sweet rewards all within the Piggy Finance ecosystem itself, no swaps required. You have two main options, both of which we’ll explore below. The first is to deposit $PUSD directly on Piggy Finance, while the second is to add liquity in a DEX — whichever you choose, you’ll find it a productive way of taking full advantage of your funds!
Staking $PUSD on the Stability Pool
Once you’ve taken out your loan on Piggy Finance and received your $PUSD, stake your $PUSD to not only earn rewards on the protocol but also receive discounted $BNB whenever liquidations happen.
On the Piggy.fi dashboard, navigate to ‘Stability Pool’ on the right hand-side. Press ‘Stake’ and a window will pop up asking you how much you’d like to stake.
Once your funds are staked, you’ll have officially become a Stability Provider! Stability Providers are a crucial part of the Piggy Finance ecosystem as their funds ensure the total $PUSD supply is always backed.
It’s important to note that over time, as liquidations occur, your $PUSD balance in the Stability Pool would decrease, while you earn a pro-rata share of the liquidated $BNB collateral. Don’t worry, as PiggyBanks are likely to be liquidated at just below 110% collateral ratios, Stability Providers will definitely receive a greater dollar-value of $BNB relative to the decrease in their $PUSD balance — after all, you’re getting $BNB at a 10% discount! On top of that, you’ll also receive early-adopter rewards in $PIGGY tokens, depending on your share of the Stability Pool. Rewards are earned every block, and since BSC blocktimes average out at about 3 seconds even at high congestion, you’ll literally be earning in your sleep.
Still on the fence? Check out the Piggy Finance docs here for more information on the Stability Pool and Liquidations.
Adding Liquidity into a DEX
Another great option for your $PUSD is to add liquidity into a DEX, which allows you to earn fees whenever trades are made on the $PUSD / $BUSD pair, in proportion to the size of your share of the pool. Needless to say, it is more attractive to put in larger amounts in order to reap the best rewards!
Fees are continually added into the pool in real time, and are redeemable whenever you decide to withdraw your liquidity.
Getting started in a liquidity pool is a breeze. Click here to check out our liquidity pool on DODO. Press ‘Add Liquidity’ and choose a proportion of $BUSD and $PUSD you’d like to add into the pool.
Once that’s done, sit back and enjoy your fees accumulating 24/7.
In short…
Piggy Finance is where your wealth gets wings: where you can leverage your $BNB to get the biggest profits over the shortest timeframes. As with any investment, there are risks, but Piggy Finance has several battle-tested mechanisms in place to ensure the safety and stability of the protocol. If you’d like to know more, connect with Piggy Finance now:
