Binance launches the highly anticipated liquid staking token for Solana stakers.
According to an announcement today, users can now stake their Solana tokens on Binance and receive a liquid staking token, dubbed Binance SOL Staking (BNSOL).
The move comes days after Binance introduced BNSOL, revealing plans to roll out the token this month.
Today, the exchange has finally launched the liquid staking token for SOL stakers. SolanaFloor, a top Solana news outlet, also confirmed the development in an X post today.
🚨NEW: @binance‘s Solana liquid staking token $BNSOL is now live pic.twitter.com/XyyJiD7JZ5
— SolanaFloor (@SolanaFloor) September 12, 2024
BNSOL Features
Notably, BNSOL represents users’ staked Solana tokens on a 1:1 ratio. This implies that users will receive one BNSOL for each SOL token staked on Binance. However, as users accumulate more rewards, the value of BNSOL exceeds that of the staked SOL.
With BNSOL, users can maintain the liquidity of their staked SOL tokens while earning staking rewards. Based on this liquidity function, users can lend, trade, and use their assets on Binance and external DeFi platforms while earning staking rewards.
Native Vs. Liquid Staking
The recently introduced solution offers enhanced utility and flexible rewards for Solana stakers on Binance. Essentially, BNSOL gives stakers the liquidity of their staked SOL tokens, a feature absent in native staking on the Solana network.
This native staking solution requires users to leave their SOL tokens staked until a specific period. However, Binance’s liquid staking provides users with flexibility, allowing them to trade and lend their staked assets through its liquid equivalent.
Getting Started with Binance SOL Staking
The new Solana staking method does not require special expertise. To stake, users can deposit SOL to their Binance spot address or purchase the token directly from the exchange.
Afterward, navigate to the Earn section of the exchange, click “Simple Earn,” and select “Stake SOL.” Here, users are expected to enter the amount they wish to stake, read and agree to the terms and conditions, and proceed by clicking Stake SOL.
Redeeming and Using BNSOL
Upon staking SOL, the amount of BNSOL users will receive in their spot wallet is determined by the BNSOL:SOL conversion ratio, which is updated every 48 hours. The liquid staking token can be redeemed at any time, either by trading BNSOL for other assets or after a waiting period.
Users can also withdraw BNSOL to Binance Web3 Wallet and explore Solana-based protocols supporting the liquid staking token. These include MarginFi, Solayer, Pyth, Orca, and Solayer, among others.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
