- By the end of the month, Binance will introduce a Solana staking product that will let users keep utilizing their collateral and get compensation for staking it.
- An announcement on Tuesday stated that Binance, the biggest cryptocurrency exchange in the world, will launch a Solana staking product by the end of September.
With the so-called BNSOL tool, users will be able to mint a liquid staking token that can be utilized while the underlying tokens are locked up and stake SOL tokens to receive a share of the fees distributed by the network.
“Unlike native staking, which locks up assets, BNSOL allows users to unlock liquidity, enjoy continuous reward accumulation, and seamlessly participate in both the Binance platform and the broader DeFi ecosystem, making it an ideal solution for those looking to maximize the potential of their staked Solana tokens,” said Vishal Sacheendran, head of regional markets at Binance.
In a proof-of-stake blockchain such as Solana or Ethereum, a liquid staking token is a kind of cryptocurrency that enables users to trade and access DeFi marketplaces even when their underlying collateral is secured.
The “dynamic APR” that Binance is programming into the tokens will be modified in accordance with the current Solana staking payouts. It will also adhere to a commission ratio that is correlated with the total amount of rewards accrued and the value of BNSOL in relation to SOL. There will be a waiting period before users can redeem their tokens.
Later this month, Binance will formally announce the protocol’s introduction.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
