Cryptocurrency is currently growing rapidly, and one way to make a profit is by staking. This time we will discuss Binance SOL Staking and Binance's latest liquid token, BNSOL. What is BNSOL and how to stake it? Let's discuss it further!
What is Binance SOL Staking and BNSOL?
Binance SOL Staking is a way for you to stake SOL tokens and earn BNSOL, a liquid staking token (LST) that allows you to continue earning staking rewards while using the tokens for trading, lending, or providing liquidity across various DeFi platforms.
In traditional staking, your staked SOL tokens are locked for a certain period. However, with Binance SOL Staking, you can still use your tokens through BNSOL while still collecting staking rewards.
đą Key Info: With Binance SOL Staking, you can get the best flexibility, liquidity, and security in the Binance ecosystem, while enjoying the benefits of SOL staking!
Benefits of Using Binance SOL Staking
1. Open Liquidity
Unlike regular staking on the Solana network that locks your assets, with BNSOL, you can trade, lend, and use your staked tokens without having to wait for the lock period to end.
2. Get Staking Rewards
Over time, the value of BNSOL will increase as staking rewards accumulate. The value of 1 BNSOL will continue to increase compared to 1 SOL because of these rewards.
đĄ Example: Every epoch on the Solana network (approximately 2 days), the BNSOL value is updated based on the prevailing BNSOL ratio.
3. Flexibility in Withdrawals
You can exchange BNSOL for SOL at any time according to the prevailing ratio at that time. This exchange process can take around 4 days to process, but you can still sell BNSOL on the spot market if you need faster access.
4. Various Utilities
BNSOL supports a variety of Binance products and DeFi protocols, allowing you to use the token for staking, trading, and borrowing on platforms integrated with Binance. This is an opportunity to maximize capital efficiency.
đ Read more about BNSOL utilities here.
5. One Click to Staking
The staking process is easy and suitable for beginners. With just one click, you can immediately stake your SOL and start earning rewards.
6. Trusted Platform
Binance is a global platform known for its security and reliability. So, when you stake SOL on Binance, you will benefit from Binance's solid security system.
âïž How to Participate in Binance SOL Staking
Want to participate in Binance SOL Staking? Here are three easy steps you can follow:
Stake SOL: Stake your SOL and earn BNSOL as a representation of the tokens you stake.
Get SOL Rewards: SOL Rewards will continue to grow as you hold BNSOL.
Redeem SOL: Exchange BNSOL to SOL anytime at the applicable ratio.
For more information, you can visit Binance's official website and prepare yourself for the launch of Binance SOL Staking in September!
Well but what's the difference?
Here are the details:
When choosing the right staking method, it is important to understand the differences between Binance SOL Staking, Binance Earn Locked Products, and Native Solana Staking. Each option has different characteristics, both in terms of flexibility, fees, and asset lock periods.
Platform: Binance SOL Staking and Binance Earn Locked Products both operate on the Binance platform, while Native Solana Staking is done through the Solana Wallet. This means that when you use Binance SOL Staking, you get full access to the vast Binance ecosystem, including support for a variety of DeFi products.
Utility Token: One of the advantages of Binance SOL Staking is the presence of BNSOL, a liquid token that allows users to earn staking returns while still being able to use the asset for various purposes such as trading, lending, and liquidity. Meanwhile, in Binance Earn Locked Products and Solana Native Staking, there are no utility tokens issued, so their flexibility is more limited.
APR (Annual Percentage Rate): Binance SOL Staking and Native Solana Staking offer Dynamic APR, meaning the returns can change depending on market conditions. On the other hand, Binance Earnâs Locked Product offers Fixed APR, which is fixed depending on the lock period selected (30, 60, 90, or 120 days).
Network Fees: Binance SOL Staking and Binance Earn Locked Products users are not charged additional network fees, while Native Solana Staking typically charges low network fees.
Staking Quota: Binance SOL Staking allows users to have high personal quotas, while quotas on Binance Earn Locked Products depend on the selected lock duration. For Native Solana Staking, there is no quota limit imposed (unlimited quota).
Withdrawal Requirements: Binance SOL Staking provides flexibility when it comes to withdrawals, where users can cash out their tokens within 4 days or sell BNSOL directly on the spot market for instant liquidity. Unlike Binance Earnâs Locked Products which have strict lock-up requirements, users must wait for the selected lock duration (30 to 120 days) or forfeit all accrued yields if they cash out early. With Native Solana Staking, withdrawals take around 2 days.
This comparison shows the advantages of Binance SOL Staking, especially in terms of flexibility and liquidity. With Binance SOL Staking, you can still use your staked assets (SOL) for various purposes on Binance and other DeFi ecosystems, while still earning staking returns.
â ïž Risks to Watch Out For
Cryptocurrencies carry high risks due to price volatility. Before investing, make sure you understand the product and the risks involved. Consider your investment experience, financial situation, and investment objectives before making a decision. Consult a financial advisor if necessary.
Conclusion
Binance SOL Staking gives users the opportunity to gain more flexibility and liquidity in SOL staking. With BNSOL, you can still use your SOL tokens without losing the opportunity to earn staking rewards. Don't miss this opportunity, stake your SOL now and reap the benefits!
