BNSOL is a new liquid staking token introduced by Binance that allows users to earn rewards from their staked Solana (SOL) while maintaining full flexibility with their assets. Previously, staking SOL would lock up your coins, but with BNSOL, you can transfer, sell, or trade your tokens while still earning staking rewards. This new feature offers a significant advantage to users who want to profit from their staked assets without losing liquidity.
Introduction to BNSOL Staking
Binance’s BNSOL staking is a revolutionary way to stake Solana tokens on the Binance platform. Unlike traditional staking, where your coins are locked and inaccessible, BNSOL tokens allow users to stake their SOL while still having the flexibility to move, trade, or sell them at any time. Essentially, your SOL remains staked, generating rewards, but with the liquidity to use them as you please—just like regular SOL tokens. This feature is now available on Binance, providing users with a unique opportunity to maximize profits from their staked assets without compromising flexibility.
How to Stake BNSOL on Binance
Staking BNSOL on Binance is a straightforward process. Follow these steps:
Log in to Binance: Access your Binance account.
Go to Binance Earn: Click on the "Earn" tab.
Select Solana (SOL): Search for Solana in the Earn section.
Choose SOL Staking: Select the SOL staking option, where you can convert your SOL into BNSOL tokens.
Once you stake, your SOL will be converted into BNSOL at the current rate, allowing you to earn rewards while keeping liquidity. You can trade, sell, or transfer BNSOL anytime, without interrupting the staking process.
Example of BNSOL Staking
On 15 August 2024, the BNSOL conversion ratio was 1:1.00873429. If you staked 15 SOL, you would receive approximately 14.867547 BNSOL based on that ratio.
As time passes and rewards accumulate, the BNSOL value increases relative to SOL. For example, on 15 November 2024, the conversion ratio rose to 1:1.01634872. If you redeemed your BNSOL on that date, you would receive 15.104828 SOL, which includes both the original staked amount and the earned rewards.
Read this Disclaimer Before You Invest
Please note that the price of SOL in USDT can fluctuate, which may affect the value of your staked assets. Staking SOL comes with inherent risks, and any changes in market conditions could impact your financial standing. It is recommended to assess your risk tolerance and make staking decisions accordingly.
How can you convert BNSOL tokens to SOL?
Converting your BNSOL tokens back to SOL is simple:
Log in to Binance: Access your account on Binance.
Go to Binance Earn: Navigate to the "Earn" section.
Locate BNSOL: Find the BNSOL option under your holdings or the staking section.
Redeem BNSOL: Click on BNSOL and select the option to redeem your tokens.
If your staking plan is flexible, you can redeem your BNSOL at any time, converting it back to SOL immediately.
If your staking plan is locked, you may need to wait until the lock period ends before you can redeem your tokens and stop earning staking rewards.
After redemption, your BNSOL will be converted back to SOL based on the current BNSOL conversion ratio.
What Can You Do With BNSOL Tokens?
There are a few great ways to earn with BNSOL tokens across various DeFi platforms.
Start Liquidity Farming
BNSOL can be used for liquidity farming. You provide liquidity to decentralized exchanges (DEXs) in exchange for rewards. By pairing BNSOL with another token, such as SOL, in a liquidity pool, you earn fees whenever users trade between the pairs.
Lending and Borrowing Protocols
BNSOL can be used on other networks and platforms for similar purposes, enabling you to borrow or lend your BNSOL tokens beyond the Solana ecosystem. This versatility provides broader opportunities to optimize your asset utilization and maximize returns.
Structured Products and Yield Aggregators
For more advanced DeFi strategies, BNSOL can be employed in structured products and yield aggregators. These tools optimize returns by participating in more sophisticated yield-generating opportunities within the crypto ecosystem.
Restaking Protocols
Restaking involves using staked assets for further rewards. BNSOL tokens can be restaked through smart contracts in restaking protocols like Solayer, allowing you to participate in more applications on the Solana network while continuing to earn rewards from your initial staked SOL.
Bottom-line
BNSOL represents a significant advancement in the world of staking by combining the benefits of liquidity and staking rewards into a single token. With Binance’s BNSOL, Solana holders can now enjoy the best of both worlds: their staked assets continue to generate rewards while retaining the flexibility to trade, sell, or use their tokens as they see fit.
