In the ever-evolving world of decentralized finance (DeFi), new platforms continue to emerge, each offering unique features and advantages. One such platform is Penguin Finance, which operates on the Avalanche C-Chain network. But what makes Penguin Finance stand out, and how can you navigate it effectively? Let’s dive deep into this comprehensive guide that provides you with a step-by-step process on how to leverage Penguin Finance to its fullest potential.
What is Penguin Finance?
Penguin Finance is a promising DeFi project that initially focused on yield farming by utilizing the liquidity pools from Pangolin, one of the pioneering automated market makers (AMM) on the Avalanche network. Currently, Penguin Finance has expanded its operations across several other AMM DEXs such as Trader Joe and Lydia. As it evolves, Penguin Finance aims to make a significant mark in the DeFi landscape by introducing features like a prediction market and the merging of NFTs with DeFi applications. The platform prides itself on offering competitive incentives that surpass those typically found in the DeFi arena.
Prerequisites for Using Penguin Finance
Setting Up Your Wallet
To get started with Penguin Finance, one of the first steps is to set up a suitable crypto wallet. Here’s how you can do that:
Download the Coin98 Wallet:
- Visit the Coin98 website or your app store to download the mobile wallet version.
- Follow the instructions provided on the website, or check out their tutorial video for a detailed walkthrough.
Install Coin98 Extension on Chrome:
- Head over to the Chrome Web Store, find Coin98 Extension Wallet, and add it to your browser.
- Ensure it’s enabled correctly by checking for its icon next to the address bar.
Creating an Avalanche C-Chain Wallet
Once you have the Coin98 Wallet, the next step is to create an Avalanche C-Chain wallet, which is essential for interacting with Penguin Finance.
- You can create a new wallet or import one from another platform within the Coin98 Super App.
- The app’s Cross-Chain Bridge feature allows seamless token transfers between the X-Chain and the C-Chain.
Preparing AVAX for Gas Fees
Penguin Finance requires AVAX as a gas fee for transactions. Follow these steps to acquire and prepare your AVAX:
- Purchase AVAX: Buy AVAX from a centralized exchange like Binance.
- Transfer to Your Wallet: Send your AVAX to your Avalanche C-Chain wallet address on Coin98 Super App.
Step-by-Step Guide on Using Penguin Finance
Now that you have your wallet set up and funded, let’s move into the heart of our guide: how to effectively use Penguin Finance.
Connecting Your Wallet to Penguin Finance
- Access Penguin Finance: Open the Coin98 Super App, navigate to the browser section, and search for Penguin Finance.
- Connect Your Wallet: Choose to connect via Metamask. Ensure you see your wallet address to confirm the connection was successful.
Engaging in Yield Farming
Penguin Finance offers a unique feature called “Igloos” for yield farming. Here’s how you can start:
Select the Farming Option:
- Click on the “Hamburger menu icon” located in the top left corner, and then choose “Farm”.
Enable Your Desired Farm:
- Choose the token pair you wish to farm and click the “Enable Farm” button, then confirm the transaction.
Stake Your Tokens:
- Enter the number of tokens you want to stake and click “Confirm Staking”.
- You can also opt for the optional auto-compounding feature, allowing your rewards to be reinvested automatically.
Participating in Staking
Staking iPEFI tokens is another avenue you can explore within Penguin Finance:
Navigate to the Staking Interface:
- Click the “Hamburger menu icon” once again, and select “Nest”.
Approve and Stake:
- Click “Approve PEFI”, confirm the transaction, and then specify the amount you wish to stake.
Unstaking PEFI:
- When you wish to withdraw your stakes, simply click on “Unstake”, input the desired withdrawal amount, and confirm.
Utilizing the Coin98 Wallet Extension
If you’re using the Coin98 Wallet extension on your browser, here’s how to connect it to Penguin Finance:
Visit Penguin Finance: Go to their official page (Penguin Finance).
Connecting the Extension:
- Click on “Connect Wallet” at the top right, choose Metamask, and log into your Coin98 Extension Wallet.
Switching Blockchains:
- For seamless transactions, switch to Avalanche C-Chain if it’s not already set.
Adding Liquidity to Pools
Adding liquidity is a great way to earn PEFI rewards. Follow these steps:
Initiate Liquidity Addition:
- Click on the “Farm icon” from the main screen and select your desired pool.
Enable and Confirm:
- Click “Enable Farm” and confirm the action within your Coin98 wallet.
Get Your LP Tokens:
- Complete the “Add Liquidity” step by depositing your chosen token amounts (following the 50:50 ratio) and confirm the transaction.
Staking LP Tokens: Go back to the LP page and input your desired amount to stake, then confirm.
Making Full Use of Autonesting
Don’t forget the auto-nesting feature, which allows you to deposit a portion of your rewards directly back into your farm nest, optimizing returns with minimal effort.
Frequently Asked Questions (FAQs)
Where can I find the official documentation for Penguin Finance?
All relevant documents and additional information can be found at their official documentation site: Penguin Finance Documentation.
Where can I purchase PEFI tokens?
You can buy PEFI tokens on the Coin98 Exchange and various decentralized exchanges (DEXs) operating on Avalanche, including Pangolin and Trader Joe.
What other utilities does Penguin Finance offer?
Beyond yield farming and staking, Penguin Finance also features games like Penguin Emperor, where users can engage in competitions demonstrating their skills for rewards.
Conclusion
Navigating the world of DeFi can be both exciting and overwhelming. However, with this comprehensive guide on how to use Penguin Finance, you’re now equipped with the necessary knowledge to take full advantage of the features it offers. By following the steps outlined above, you can effectively join the growing community around Penguin Finance and maximize your participation in the DeFi ecosystem. Embrace this new venture in financial innovation, and may your experience be rewarding!
