Pinecone
Search…
DeFi 101

What is DeFi?

DeFi is a short form for Decentralized finance. It is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilizes smart contracts on blockchains, the most common being Ethereum and BSC (Binance Smart Chain). DeFi platforms allow people to lend or borrow funds from others, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts etc.

What is Binance Smart Chain (BSC)?

The Binance Smart Chain (BSC) is a blockchain protocol built by one of the largest centralized exchanges in crypto, Binance, supporting smart contract functionalities and compatibility with the Ethereum Virtual Machine (EVM).
Unlike Ethereum, which is still a Proof-of-Work-based protocol, BSC uses a hybrid consensus algorithm called Proof of Staked Authority (PoSA), which allows BSC to achieve significantly higher transaction throughput without sacrificing security, result in faster transaction speed and much lower transaction fee.

What is Gas fee?

Gas Fee is the transaction fee that users pay to miners on a blockchain protocol to have their transaction included in the block. On Pinecone protocol, deposit, withdraw, harvest or any kind of interactions with Smart Contract would require a Gas Fee. Since Pinecone protocole is operating on BSC, the gas fee is paid in its native token BNB.
The system of gas fee works on a standard supply and demand mechanism. If there is more demand for transactions, miners can choose to include the transactions that pay more, compelling users to pay more to have their transactions processed quickly and efficiently.

What is Yield Farming and Yield Optimization?

Yield farming is the practice of staking or locking up cryptocurrencies in return for rewards. Users can earn interest by investing crypto in a DeFi market. The idea is to lock up funds in a liquidity pool – smart contracts that contain funds. The liquidity pools power the marketplace where users can exchange, borrow, or lend tokens. Once you’ve added your funds to a pool, you officially become a liquidity provider and receive interest income.
A person can obviously do yield farming directly with platforms like Venus.io, pancakeswap.finance or others, but Yield Optimization Protocols like Pinecone help you save on gas, maintain healthy collateral to debt ratios, self-optimize for the best possible yields, and automatically reinvest earnings, allowing users to automate their De-Fi farming experience completely and optimize the returns in the best possible way.

What is crypto wallet and how it works with Pinecone?

A crypto wallet is a tool that lets you buy, sell, store, and spend your cryptocurrency funds. – Crypto wallets safeguard the private keys to your cryptocurrency funds that are actually always stored on a blockchain.
Metamask and Trust Wallet are the most commonly used wallets in DeFi world. Metamask is a browser extension for Chrome and best used on computer, while trust wallet is best used on mobile.
🦊 Download Metamask wallet: https://metamask.io/
🛡️ Download Trust wallet: https://trustwallet.com/download-page
Learn more about creating a crypto wallet.

How do I add BSC network on my Metamask wallet?

  1. 1.
    Click the round blue button on top right on your Metamask, and then click settings
2. Click "Settings", choose "Networks"
3. Select "Add Network"
4. Input the following parameters:
Then you are done! Remember to select Binance Smart Chain on your wallet everytime you access our Pinecone Dapp.

Why I cannot find PCT token in my wallet?

Sometimes your wallet may not automatically display all the tokens you have and you have to manually add their smart contract.
Click "Add Token" button on Metamask and paste the PCT smart contract address:
Last modified 6mo ago