Bancor now offers exceptionally low slippage on large trades of ETH thanks to having the lowest trading fees (0.2%) and some of the deepest liquidity to the token of any DeFi protocol ($385m as of 09/2021). Here, we will show you how to buy $ETH and stake it on Bancor to earn low-risk, passive yield on your $ETH.
1. Ensure you have Metamask installed and loaded with funds for trading
This is the first step to making transactions on the Ethereum network. If you haven’t already installed Metamask, please follow the instructions here.
2. Connect Metamask to Bancor
Visit https://beta.bancor.network/ and click on Connect Wallet (highlighted in the yellow box below), then select Metamask from the list of wallets that appears thereafter:
You may be prompted to enter your password into your Chrome or Firefox Metamask plug-in. Once connected, you will see your wallet address appear on the UI as below (in the yellow box):
3. Buy $ETH
ETH will already be selected as the default token to be sold in the yellow box below. Instead, you need to select the token you are using to buy $ETH. To do this, click on the ETH logo highlighted below and select or search for the token you wish to sell from the drop-down menu that opens up. In this example, we’ll be selling $wNXM to buy $ETH:
Ensuring that Market (and not Limit) is selected, enter the number of the chosen tokens you wish to sell:
Now select $ETH from the drop-down list that appears when you click Select a token (shown in the yellow box below), and you will see how much $ETH you can buy with the tokens you are selling:
Click Trade, and you will be prompted in Metamask to pay a small network fee (giving you permission to create a transaction) if this is your first time trading on Bancor in a while. Once confirmed, you will then be asked to pay the gas fee (highlighted in yellow below) to enact the transaction.
Click confirm, and wait for the transaction to be completed. Once complete, you will see your ETH in your Metamask plugin.
Done! Now to stake your $ETH on Bancor for passive yield and full impermanent loss protection.
Wanted to place a limit order instead? Find out how to do so here.
Passive yield from trading fees with impermanent loss protection has been Bancor’s killer feature since the launch of v2.1, and the ETH pool has become one of the most popular destinations in DeFi for liquidity providers, as well as being the largest pool on Bancor. Here we’ll show you how to earn passive yield on your $ETH.
- Ensuring Bancor is connected to Metamask, visit https://app.bancor.network/eth/data/ and search for the ETH pool in the search box (in the yellow box below).