This is a post on how to buy BAO Token from Bao Finance but also how to farm BAO token instead of buying and why it has been quite attractive for DeFi enthusiasts.
BAO Finance is an interesting DeFi project that describes itself as a synthetic asset and lending platform, kinda like a combination of SNX and Aave. However, more immediately the reason it has caught the imagination of a lot of people and projects is its somewhat unique take on yield farming.
The broader product idea from BAO Finance is to use Uniswap, Sushiswap, and Balancer LP (liquidity provider) tokens to collateralize synthetic positions. Think of this as SNX but instead of SNX being the collateral, the LP tokens will be. To that end, it made sense for BAO Finance to first release a yield farming product.
Per their site,
The BAO token acts as a governance token for the fully community run project. It is also backed by the insurance fund where all Bao fees go.
How to Farm BAO Token
Before you decide to buy BAO, it might make sense to first look at how to farm BAO token instead since this could be more profitable with lower risk. This is especially the case if you have any Uniswap LPs sitting around doing nothing. Instead, you can stake them in BAO Finance and earn some BAO tokens immediately.
The most interesting thing about BAO yield farming is that there are hundreds of LP pairs available to yield farm.
However, one thing to note upfront is that you will only get 5% of the BAO tokens that you farm upfront. The rest will vest over a period of 3 years with a 1 year cliff. Therefore, if you are looking for a short-term farm, make sure to figure out if these numbers work out for you or not.
This is also why the advertised APYs are so high, since only 5% of this is “real” at the moment.
Also, make sure to read the docs, especially around fees and penalties before you start farming. There is both a deposit and withdraw fee.
The good news though is there are hundreds of LP pairs available so there are a lot of options. Check out all the BAO Farms here.
How to Buy BAO Token
BAO token has been one of the top performing DeFi tokens the last few days.
If you want to directly buy BAO token, make sure you buy via 1inch so you can get the best possible price. 1inch will automatically aggregate all of DeFi liquidity sources for you including Uniswap and Sushiswap. Uni and Sushi have the largest BAO pools of liquidity since they are incentivized with BAO farming currently.
You can also easily convert non-ETH ERC20 tokens into BAO via 1inch automatically via the best price execution and by splitting your order the right way.