# BSC Citadel

## **Investing Approach** <a href="#id-0352" id="id-0352"></a>

BSC Citadel strategy is very similar to DAO Citadel strategy on Ethereum mainnet, but built on BSC network to take advantage of the lower gas fees. With lower fees guaranteed on BSC, the users can enjoy higher yield farmed and compounded more frequently. This strategy is a true efficient strategy for users’ capital.

According to the designed allocations, the tokens are paired up with major cryptocurrencies on BSC to create liquidity and farmed on Pancakeswap. The majority of the allocation goes to BTCB and user assets into a balanced basket of top tokens to minimise risk yet taking full advantage of the growing crypto ecosystem, BSC. Portfolio components are chosen based on criteria such as market cap, popularity, and development.

With this, the overall strategy not only benefits from the appreciation of the price of the tokens but also benefits from the additional rewards the liquidity pools offer. For compounding, the rewards for farming CAKE generated by the liquidity pools are then automatically sold at regular intervals and are then reinvested back into the LP.

## **Allocations** <a href="#f3e6" id="f3e6"></a>

* 40% BTCB (wrapped BTC)
* 25% ETH
* 20% BNB
* 10% CAKE
* 5% BUSD

The actual pairs provided in this strategy look like this:

* **50% BTCB-ETH**
* **20% BTCB-BNB**
* **20% CAKE-BNB**
* **10% BTCB-BUSD**

## **Portfolio Growth** <a href="#e3f3" id="e3f3"></a>

Incentives earned from yield farming these pairs would automatically be compounded by our smart contracts. The portfolio will be rebalanced to reset the strategy back to its standard allocations and weights laid out above so that you will always maintain a balanced allocation!

## **Risks** <a href="#id-57b4" id="id-57b4"></a>

A standard risk when it comes to providing liquidity on decentralized exchanges is impermanent loss. If you want to know more about the impermanent loss, please check [this article](https://academy.binance.com/en/articles/impermanent-loss-explained), made by [Binance](https://medium.com/u/57600910a883?source=post_page-----24da4ed11dd0-----------------------------------) Academy.

## **Fees** <a href="#id-4132" id="id-4132"></a>

Besides the standard 0.5%-1% deposit fees and 20% profit sharing fees (see [here](https://daoventures.gitbook.io/daoventures/frequently-asked-question) for more details), there is a 10% fee on the yield farmed which is used to pay the gas fees associated with harvesting rewards and depositing LPs.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://daoventures.gitbook.io/daoventures/products/strategies/binance-smart-chain/bsc-citadel.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
