Flux Protocol Mining Guide on BSC Network

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Flux Protocol is a decentralized, secure, and non-custodial next-generation DeFi lending platform designed for digital asset collateral. Initially incubated within the Conflux ecosystem, it is built by the Zero One team and leverages an innovative interest rate model with user-friendly抵押 and liquidation mechanisms. The protocol is multi-chain, with deployments on Conflux, BSC, HECO, OKChain, and Ethereum.

The protocol officially launched its initial mining phase on the BSC network at block height 6442888, which occurred around April 10th at 20:00 UTC. This guide covers the essential steps for participating in Flux mining on BSC.

Understanding Flux Tokenomics

The native token, FLUX, serves multiple purposes within the ecosystem. It incentivizes liquidity providers, facilitates governance voting on protocol improvements, and can be staked in a security module to insure the protocol and depositors, earning rewards in return.

The total supply of FLUX is fixed at 21 million tokens, following the ERC-20 standard. Importantly, all tokens are generated through mining—there were no angel or venture capital allocations, private sales, or pre-mining.

Token Distribution

The emission rate decreases linearly by 16 FLUX per day. The initial mining phase on BSC lasted 14 days, with a special "boost" of 1 million FLUX, 750,000 of which was added to the mining pools and 250,000 locked for the team and DAO.

How to Mine FLUX on BSC

There are three primary methods to earn FLUX tokens on the Binance Smart Chain.

Method 1: Deposit and Borrow Directly on Flux

This is the most straightforward method, involving supplying assets to or borrowing from Flux's native pools.

Deposit Mining

  1. Access the Platform: Navigate to the Flux official website and ensure your MetaMask is connected to the "BSC Mainnet."
  2. Connect Your Wallet: Click "Connect Wallet," select MetaMask, and choose your BSC account to link.
  3. Supply Assets: Click the "Lend" button. Find the asset you wish to supply (e.g., BETH) and click "Deposit." For first-time interactions, you'll need to click "Enable" to grant permission, then confirm the transaction. Afterwards, enter the amount you wish to deposit and confirm the transaction again.
  4. Track Earnings: Your supplied balance and accumulated FLUX rewards will be visible in the "My Data" section on the dashboard. Rewards are automatically claimed to your wallet during interactions with the protocol.

Borrow Mining

  1. Follow Steps 1 & 2 from the deposit guide above.
  2. Borrow Assets: Click the "Lend" button. Find the asset you wish to borrow (e.g., DAI) and click "Borrow." Enter the amount and confirm the transaction in MetaMask.
  3. Track Earnings: Your borrowed balance and accumulated FLUX rewards will be visible in "My Data." 👉 Explore more strategies for optimizing your borrowing to maximize rewards.

Method 2: Stake vTokens or crTokens from Venus/Cream

This method allows you to earn FLUX by staking yield-bearing tokens you obtain from other lending protocols.

  1. Acquire vTokens/crTokens:

    • Go to Venus or Cream.
    • Connect your MetaMask wallet (on BSC).
    • Supply an asset (e.g., USDT on Venus) to receive the corresponding vToken (e.g., vUSDT) as a deposit certificate.

  2. Stake on Flux:

    • Return to the Flux website and click the "Mining" tab.
    • Find the pool for your specific vToken or crToken.
    • Click "Stake," enter the amount, and confirm the transaction. Your FLUX rewards will begin accruing.

Method 3: Stake Bridged aTokens/cTokens from Ethereum (Aave/Compound)

This advanced method involves bridging assets from Ethereum to BSC to participate in specialized pools.

  1. Acquire aTokens/cTokens on Ethereum:

    • Visit Aave V1 or Compound.
    • Connect your MetaMask (on Ethereum Mainnet).
    • Deposit an asset (e.g., ETH on Aave V1) to receive an aToken (e.g., aETH).

  2. Bridge to Conflux:

    • Use the ShuttleFlow bridge via the Flux website or directly at shuttleflow.io.
    • Connect your Conflux Portal wallet. Select to bridge your aToken from Ethereum to Conflux; this will convert it to a caToken (e.g., caETH). Copy the receiving address.
    • In your MetaMask (Ethereum), send your aToken to the copied Conflux bridge address.

  3. Bridge to BSC:

    • On ShuttleFlow, switch to bridge from Conflux to BSC. Select your caToken (or ccToken from Compound) to bridge it to BSC, which will convert it to a bcaToken or bccToken (e.g., bcaETH). Enter your BSC wallet address as the recipient.

  4. Stake on Flux:

    • Once the bcaToken/bccToken arrives in your BSC wallet, go to the "Mining" section on Flux.
    • Find the relevant pool, click "Stake," and deposit your tokens to start earning FLUX.

Frequently Asked Questions

What is the FLUX token used for?
FLUX is primarily a reward token for liquidity providers on the Flux protocol. It also serves as a governance token, allowing holders to vote on proposals, and can be staked in a security module to provide insurance for the protocol while earning fees.

Do I need to claim my FLUX mining rewards manually?
No, one of the user-friendly features of Flux is that your FLUX rewards are automatically claimed and sent to your connected wallet whenever you perform a transaction involving your deposited or borrowed assets (e.g., depositing more, withdrawing, or repaying a loan).

What is the difference between deposit mining and borrow mining?
Deposit mining rewards users for supplying liquidity to the protocol (earning interest). Borrow mining rewards users for taking out loans (paying interest). Both actions provide liquidity and utility to the market and are therefore incentivized with FLUX tokens.

Can I participate if I only have assets on Ethereum?
Yes, but it requires a multi-step bridging process (Method 3). You must first deposit assets on Aave V1 or Compound on Ethereum to get aTokens/cTokens, then bridge them to Conflux, and finally to BSC before you can stake them on Flux. This method is more complex and involves Ethereum gas fees.

Is Flux Protocol safe to use?
Flux Protocol has been audited by the renowned blockchain security firm CertiK. While audits significantly reduce risk, users should always be aware that interacting with DeFi smart contracts carries inherent risks. It's advisable to start with small amounts.

Why would I borrow funds just to mine FLUX?
This is a strategy known as "leveraged mining." If the value of the FLUX tokens you earn is greater than the borrowing interest you pay, you can generate a profit. However, this strategy carries additional risks, including market volatility and the potential for liquidation if the value of your collateral falls.