{"id":2844,"date":"2022-05-05T10:29:03","date_gmt":"2022-05-05T10:29:03","guid":{"rendered":"https:\/\/deficoins.io\/?page_id=2844"},"modified":"2022-05-06T12:45:34","modified_gmt":"2022-05-06T12:45:34","slug":"defi-swap-guide-how-to-use-defi-swap-with-metamask","status":"publish","type":"page","link":"https:\/\/deficoins.io\/defi-swap-guide-how-to-use-defi-swap-with-metamask\/","title":{"rendered":"DeFi Swap Guide – How to Use DeFi Swap With MetaMask"},"content":{"rendered":"
DeFi Swap is a newly launched decentralized finance platform that enables users from all over the world to maximize their cryptocurrency investments.<\/p>\n
Put simply, not only does DeFi Swap allow you to instantly swap one digital currency for another without requiring a centralized provider, but you can also earn an attractive yield on idle tokens.<\/p>\n
This is possible through both crypto yield farming and liquidity pool contributions.<\/p>\n
The purpose of this guide is to explain how the DeFi Swap platform works, alongside a comprehensive step-by-step walkthrough of how to make the most of its exchange and yield-generating services when using the MetaMask wallet.<\/p>\n
Contents<\/p>
Decentralized Finance, or DeFi, is an emerging industry that aims to remove centralized third parties from everyday financial services. This includes everything from banking and trading to insurance and foreign exchange.<\/p>\n
The overarching concept is that through the use of blockchain and smart contract technologies, people can access their desired financial services in a decentralized manner. This offers readily available solutions to a plethora of real-world problems found in the traditional financial sector.<\/p>\n
For example, should you wish to earn interest on capital you have saved, conventional banks from major economies rarely pay an APY (Annual Percentage Yield) of more than 1%.<\/p>\n
This has been the case since the 2008 financial crisis, which has been further amplified by ongoing quantitative easing programs initiated by central banks. In comparison, leading platforms like DeFi Swap enable you to earn double or even triple-digit APYs on cryptocurrency deposits.<\/p>\n
Another core issue associated with the traditional finance space that DeFi solves is with respect to exchange services. For instance, should you wish to exchange one currency for another – whether that is in the form of fiat or crypto assets, you are required to go through a third party.<\/p>\n
This might be a bank, FX broker, or centralized cryptocurrency exchange – depending on the asset you wish to convert. Either way, centralized bodies often charge hefty fees for facilitating exchange services. You also need to trust that your assets are in good hands while the transaction is being executed on your behalf.<\/p>\n
This is in stark contrast to how DeFi works, as there is no involvement from third-party intermediaries. Instead, through smart contract agreements, you can instantly swap one digital currency for another at the click of a button, at fees that often average just a very small fraction of a dollar.<\/p>\n
The above examples are just two of many. The core takeaway here is that within the next decade, many market commentators argue that a large segment of the traditional financial services sector will be replaced by DeFi.<\/p>\n
And therefore, DeFi Swap aims to become the go-to platform for all decentralized finance services for people from all walks of life.<\/p>\n
At the forefront of the DeFi Swap ecosystem is its native digital currency – DeFi Coin.<\/p>\n
DeFi Coin sits at the heart of all transactions that take place on the DeFi Swap platform.<\/p>\n
This means that when an investor or trader decides to use DeFi Swap to convert digital currencies or generate an attractive APY via farming or liquidity pool provision, this has a hugely positive impact on the value of DeFi Coin in the open marketplace.<\/p>\n
Furthermore, the underlying smart contract that governs DeFi Coin has an innovative taxation policy in place that encourages token owners to HODl in the long term. This stands at 10% of the transaction amount – which subsequently penalizes and discourages short-term market speculators.<\/p>\n
The taxation that DeFi Coin collects from buy and sell orders is subsequently invested back into the broader DeFi Swap ecosystem. This is because 50% of the collected tax is distributed to existing DeFi Coin holders. The other 50% is deposited into the DeFi Coin liquidity pool via a smart contract agreement.<\/p>\n
DeFi Coin is available to buy on DeFi Swap – meaning that you can purchase the token in a decentralized manner.<\/p>\n
If you are completely new to the concept of purchasing digital currencies without a third-party operator, the sections below will walk you through the process with a MetaMask wallet.<\/p>\n
In order to access DeFi Swap so that you can buy DeFi Coin, you will need to install a suitable wallet like MetaMask.<\/p>\n
<\/p>\n
Not only can you download MetaMask as a mobile app, but it can also be installed via a Google Chrome, Firefox, Brave, or Edge browser extension.<\/p>\n
As a result, this will make the DeFi Coin investment process significantly easier – not least because you can use your laptop or desktop computer.<\/p>\n
To get the process started, visit the MetaMask.io website and click on the \u2018Download\u2019 button. Then, choose your preferred device option. In our example, we are installing MetaMask to our Google Chrome browser.<\/p>\n
Now that you have installed MetaMask, you will need to set your wallet up. First, you will be asked to choose a strong password. This will be required every time you wish to log into MetaMask from the device that you have the wallet installed on.<\/p>\n
<\/p>\n
Next, you will then be shown your private keys in the form of a backup passphrase. Write the 12 words down in the correct order and keep the sheet of paper somewhere safe.<\/p>\n
Take note, if somebody has access to your backup passphrase, they can access your MetaWallet wallet remotely.<\/p>\n
The Defi Coin token operates on top of the Binance Smart Chain (BSc). By default, MetaMask does not connect to BSc, so you will need to add the network to your wallet manually.<\/p>\n
First, click on the circular icon at the very top-right hand corner of your wallet interface. After clicking on the ‘Setting’s button, select ‘Add Network’.<\/p>\n
<\/p>\n
You will then be asked to type in the specifics of your chosen network, which in this case, is BSc.<\/p>\n
Copy and paste the following credentials to add BSc to MetaMask.<\/p>\n
Network Name<\/b>: Smart Chain<\/p>\n
New RPC URL<\/b>: https:\/\/bsc-dataseed.binance.org\/<\/p>\n
ChainID<\/b>: 56<\/p>\n
Symbol<\/b>: BNB<\/p>\n
Block Explorer URL<\/b>: https:\/\/bscscan.com<\/p>\n
After entering the above information, click on the \u2018Save\u2019 button. Head back to the main interface of your MetaMask wallet to ensure that you have correctly added the BSc network.<\/p>\n
<\/p>\n
You will know that you have done this correctly if, at the top-right corner of your MetaMask interface, it now displays \u2018Smart Chain\u2019 as opposed to \u2019Ethereum Mainnet\u2019. Furthermore, you will now see that your wallet currency is \u2018BNB\u2019 instead of \u2018ETH\u2019.<\/p>\n
Now that you have set MetaMask up, you will need to transfer BNB into your wallet. The reason for this is that as DeFi Coin operates on top of the Binance Smart Chain, the token is traded against BNB.<\/p>\n
As one of the largest digital currencies in terms of market capitalization, it goes without saying that you can buy BNB from a wide variety of exchanges.<\/p>\n
<\/p>\n
This includes Binance – which supports debit and credit cards – meaning that you can instantly buy BNB at the click of a button.<\/p>\n
The general process of buying BNB from an exchange like Binance is as follows:<\/p>\n
Once you have purchased BNB from an online exchange, you will need to transfer the tokens over to MetaMask. Before you can do this, you will need to copy your unique MetaMask wallet address for BNB.<\/p>\n
You will find the ‘Copy to Clipboard’ button beneath ‘Account 1’ at the top of your Metamask wallet interface – click it.<\/p>\n
You will then need to paste the wallet address into the relevant field when requesting a BNB withdrawal at your chosen exchange. BSc transactions are super fast – so you should find that the BNB tokens appear in your MetaMask wallet in under 30 seconds.<\/p>\n
Now that you have BNB in your MetaMask wallet, you are ready to buy DeFi Coin. In order to do this, you will first need to visit the DeFi Swap website.<\/p>\n
Then, click on \u2018Connect to a Wallet\u2019 from the top-right hand corner of the homepage. You will then need to select \u2018MetaMask\u2019. In doing so, a notification from MetaMask on the side of your browser will appear asking you to confirm the connection to DeFi Swap.<\/p>\n
<\/p>\n
Once you confirm the connection, you can then use your MetaMask balance to buy DeFi Coin via DeFi Swap.<\/p>\n
The final step that you are required to take to buy DeFi Coin is to place a swap order. This simply means that you are swapping BNB for DEFC.<\/p>\n
<\/p>\n
<\/p>\n
In the box next to \u2018BNB\u2019, you will need to type in the amount that you wish to swap for DeFi Coin.<\/p>\n
The corresponding amount of DEFC tokens will update – based on current market prices. Then, click on the \u2018Swap\u2019 button.<\/p>\n
<\/p>\n
You will then be asked to confirm the swap, which you can do by clicking on the relevant button.<\/p>\n
In doing so, a MetaMask notification will now pop up asking you to confirm that you wish to use your balance to complete a purchase at DeFi Swap.<\/p>\n
<\/p>\n
That is the DeFi Coin investment process complete. You can now open your MetaMask wallet to view your newly purchased DEFC tokens.<\/p>\n
One of the most popular features found on the DeFi Swap platform is the ability to convert one crypto token into another without needing to use a third-party operator.<\/p>\n
Instead, once you enter your requirements and confirm the swap, the underlying smart contract will complete the exchange on your behalf.<\/p>\n
In the sections below, you will find a step-by-step walkthrough of how to exchange crypto tokens on the DeFi Swap platform.<\/p>\n
Before you can swap tokens, you will need to connect your wallet to the DeFi Swap platform. As noted earlier, MetaMask is the best option for this purpose.<\/p>\n
If you are yet to install MetaMask to your browser, you will find a step-by-step walkthrough of the required process further up in this guide.<\/p>\n
Nonetheless, you will first need to click on the \u2018Connect Wallet\u2019 button from the top-right hand corner of the DeFi Swap homepage. Then, select \u2018MetaMask\u2019.<\/p>\n
<\/p>\n
A pop-up notification from MetaMask will then appear from the side of your browser asking you to confirm the connection with DeFi Swap.<\/p>\n
The next step is to choose the token that you wish to swap. This is the token that you currently hold in your wallet.<\/p>\n
By default, BNB will be selected by the DeFi Swap platform.<\/p>\n
<\/p>\n
In order to change this, you simply need to click on \u2018BNB\u2019 and type in the name of the digital currency that you wish to use for the swap.<\/p>\n
With that said, we are looking to use BNB as our base currency anyway, so we will leave the swap box as it is.<\/p>\n
The next step is to choose the token that you wish to receive once the swap is complete. By default, DEFC is selected.<\/p>\n
You can choose your preferred token by clicking \u2018DEFC\u2019 and typing in the name of the respective token.<\/p>\n
Once again, we will leave the swap box as it is, as we are looking to exchange BNB for DEFC nonetheless.<\/p>\n
The next step is to specify the number of tokens that you wish to swap.<\/p>\n
In this example, we are looking to swap 0.004 worth of BNB – which gets us 10.3082 DEFC. This exchange rate is based on real-time market prices.<\/p>\n
<\/p>\n
You will then need to click on the \u2018Swap\u2019 button.<\/p>\n
All that is left for you to do now is confirm the swap. This will give you the opportunity to review your order. If you are confident that you have entered the correct information, click on the \u2018Confirm Swap\u2019 button.<\/p>\n
<\/p>\n
When using your MetaMask wallet for the tutorial, a notification will once again appear from the side of your browser. Once you confirm with MetaMask, the tokens will be deducted from your wallet in real-time.<\/p>\n
The underlying smart contract will then complete the swap on your behalf – meaning that there is no centralized third-party involved.<\/p>\n
You should notice that your newly purchased tokens now appear in your MeatMask wallet.<\/p>\n
If not, you can do this manually by clicking on the \u2018Import Tokens\u2019 button and pasting the contract address for the token that you have just exchanged on the DeFi Swap platform.<\/p>\n
This guide previously mentioned that one of the core segments of the traditional financial sector that DeFi will challenge is that of interest-earning accounts.<\/p>\n
To reiterate, a recent study found that the average checking account in the US yields an interest rate of just 0.03%.<\/p>\n
Savings accounts in the US pay a marginally higher average interest rate of 0.06%. However, even at 0.06%, a $10,000 deposit would yield just $6 over the course of a year.<\/p>\n
In comparison, crypto yield farming offers highly attractive interest rates of double or even triple-digit APYs. This will often depend on the digital token that you are looking to earn interest on and the respective platform.<\/p>\n
In terms of how crypto yield farming works, this is not too dissimilar to a conventional savings account. This is because the main concept is that you will deposit your idle digital tokens into a yield farming platform and in return – generate a competitive rate of interest.<\/p>\n
Yield farming platforms like DeFi Swap are able to facilitate high APYs as the tokens that you deposit are put to good use. More specifically, the tokens will often be lent to borrowers via loans that are secured by crypto.<\/p>\n
In other circumstances, tokens deposited into a yield farming plan might be utilized for the provision of exchange liquidity. Either way, crypto yield farming can be viewed as a completely passive way to generate income on your digital asset investments.<\/p>\n
Furthermore, you retain ownership of the respective crypto assets, meaning that you will still benefit if the market value of the token increases.<\/p>\n
Most importantly, crypto yield farming operates in line with the overarching ethos of decentralized finance and DeFi Swap, insofar that the end-to-end process is free from centralized third parties and intermediaries.<\/p>\n
Instead, each and every transaction associated with the crypto yield farming ecosystem is facilitated by smart contracts – which are both transparent and immutable. This means that you can be confident that your funds are well looked after – as there is no human intervention.<\/p>\n
If you are looking to maximize your potential crypto gains via a yield farming strategy, the entire process can be completed on the DeFi Swap platform in a matter of minutes.<\/p>\n
With that said, if you are completely new to this concept, our guide will now walk you through the crypto yield farming process every step of the way.<\/p>\n
The first step is to connect your MetaMask wallet to the DeFi Swap platform.<\/p>\n
You can scroll up to review the process of setting up MetaMask if you have yet to complete this step.<\/p>\n
Nonetheless, all you need to do is click on the \u2018Connect Wallet\u2019 button followed by \u2018MetaMask\u2019 before authorizing the connection via the pop-up notification that appears on your screen.<\/p>\n
The next step is to choose the crypto token that you are planning to farm. Put otherwise, this is the token that you currently own and that you wish to earn interest on.<\/p>\n
<\/p>\n
In this example, we are selecting DeFi Coin.<\/p>\n
A notable feature offered by the DeFi Swap platform is that you can choose your preferred lock-up period. This refers to the number of days that your tokens will be locked away for and thus – you will be unable to make a withdrawal until this period concludes.<\/p>\n
Naturally, the longer that you are happy to lock your tokens away, the higher the APY that you will be able to generate.<\/p>\n
DeFi Swap typically offers four core plans – Bronze, Silver, Gold, and Platinum.<\/p>\n
To give you an idea of the yields on offer, consider the example below when farming DeFi Coin:<\/p>\n
Bronze: <\/b>30 Days – 30% APY<\/p>\n
Silver<\/b>: 90 Days – 45% APY<\/p>\n
Gold<\/b>: 180 Days – 60% APY<\/p>\n
Platinum<\/b>: 365 Days – 75% APY<\/p>\n
As you can see from the above example, over the course of one year, you can earn an APY of up to 75% when yield farming DEFC on the DeFi Swap platform.<\/p>\n
This means that for every 10,000 DEFC tokens deposited, you would generate an additional 7,500 tokens on a 12-month basis. As noted, this financial benefit is in addition to any token value gains that DEFC makes in the open market.<\/p>\n
Once you have chosen the lock-up plan that suits your investment goals, you will need to type in the number of tokens that you wish to farm.<\/p>\n
In the example below, we are looking to farm 10,000 DEFC tokens.<\/p>\n
<\/p>\n
Then, you will need to click on the \u2018Approve\u2019 button. In doing so, a MetaMask pop-up notification will once again appear. This will ask you to confirm the transaction.<\/p>\n
When you do, the tokens will be transferred from your MetaMask wallet and into your chosen crypto yield farming plan.<\/p>\n
And that\u2019s all it takes when farming crypto on the DeFi Swap platform. There is nothing else for you to do until your chosen lock-up period concludes.<\/p>\n
When it does, you will receive your initial tokens deposit back into your MetaMask wallet, alongside the interest that you have earned.<\/p>\n
Another core segment of the DeFi sector that allows you to generate interest on your idle digital assets is liquidity provision.<\/p>\n
In its most basic form, you will initially deposit your tokens into a decentralized finance platform like DeFi Swap. Then, then tokens will be allocated to a pool, which in turn, provides liquidity for the DeFi Swap exchange.<\/p>\n
This ensures that people can use the DeFi Swap platform to convert digital tokens in a smooth and efficient manner. It also ensures that there are enough tokens available to facilitate your intended swap.<\/p>\n
In return for providing liquidity to DeFi Swap, you will be paid a rate of interest. The interest that you earn is paid for via the trading fees that the DeFi Swap exchange collects from buyers and sellers.<\/p>\n
Each and every transaction that goes through the DeFi Swap exchange will earn you a 0.25% commission on all trades. This means that as DeFi Swap continues to increase its overall daily trading volume, the amount of interest you earn will also rise.<\/p>\n