Jan 102021
 
buy BAO token from BAO finance

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.

BAO token APYs

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.

BAO token price coingecko bot

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.

YFI to BAO token on 1inch

If you want a more centralized exchange experience especially when gas is high, you can always go to Binance. If you need to buy ETH via USD, Coinbase is best.

You can also find the information on BAO/ETH pairs on Uniswap and Sushiswap. This is the BAO token on Etherscan.

  8 Responses to “How to Buy BAO from Bao Finance (or Farm BAO)”

  1. Thank you, very interesting project. What do you think is the potential of this project?

    • Depends a lot on what the team can deliver really. Still early days. But it is promising they are trying to work with a lot of the DeFi infrastructure. If they can pull of synthetic assets right, that could be big.

  2. Been getting some questions about BAO farming. Just a quick note:

    – Make sure to read the docs first to get the deposit and withdraw fee. This is taken from the LPs that you deposit.
    – Make sure to understand that the APY calculation on the website is based on the full BAO amount, not just what you get immediately. You only get 5% of the BAO rewards immediately. The rest is locked up for 1 year and vests over 3 years. This explains the high APY numbers that you see on the site.

  3. Does anyone educate on this?! I’d love someone to talk me thru the above over maybe 30 min so I can acquire some BAO.

    • What exactly do you need help with? Just follow the 1inch or Uniswap link above to buy BAO via any Web3 enabled wallet like MetaMask.

  4. These are some bad times for Bao

  5. Why do you say bad?

    • May be because of the price action. It should go without saying that a token like BAO is bound to be highly volatile and 50% moves in a few days is not unheard of.

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