After the launch of the Ethereum Beacon Chain in December 2020. Lido Finance ($Lido), a decentralized finance (DeFi) protocol, introduced a mechanism that allowed users to stake their Ethereum ($ETH) without the need to run a full node, providing a more accessible and liquid way to participate in the Ethereum network.
Since then, LSTs has gained significant traction and has become a popular way for individuals and institutions to earn rewards from their crypto holdings while maintaining liquidity.
Beyond Ethereum, Solana's liquid staking ecosystem has shown significant promise. Protocols like Marinade Finance, Stakewise, and Jito have consistently contributed to the growing popularity and mainstream adoption of Solana liquid staking tokens (LSTs). Now, Binance, the world's leading cryptocurrency exchange, has entered the Solana LST market with BNSOL, a liquid staking token developed in partnership with Solayer.
TL;DR
BNSOL is Binance’s liquid staking version of SOL, allowing users to earn staking rewards while maintaining liquidity for trading and transfers.
Users can buy SOL, stake it on Binance’s Simple Earn platform, and receive BNSOL in return, which can be transferred to personal wallets.
BNSOL can be used in liquidity farming, lending protocols, restaking, structured products, and DeFi yield aggregators for additional rewards.
Unlike traditional SOL staking with fixed lock periods and APR, BNSOL offers flexibility with dynamic APR and the ability to trade or use staked assets without losing rewards.
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✅ What is BNSOL?
Binance Staked SOL (BNSOL) represents staked SOL tokens along with the accrued staking rewards. BNSOL is tradable and transferable in Binance. Typically, when SOL tokens are staked, they are locked up, making them unavailable for other uses, which can limit liquidity and increase opportunity costs. BNSOL, however, offers a flexible alternative by allowing users to sell, transfer, or utilize their staked SOL without limiting any staking rewards.
Additionally, BNSOL can be transferred to personal wallets, such as the Binance Web3 Wallet, enabling users to manage and utilize their staked assets across various platforms while continuing to earn rewards.
⏺️ How To Get BNSOL in Binance
1. Buy SOL on the Spot Market, or via the Buy Crypto page, which supports payment methods such as Visa and Mastercard cards, Apple Pay, Google Pay, and wallet balances. Users can also deposit SOL to their Binance account.
2. Navigate to the [Earn] section, select [Simple Earn] and click [SOL Staking].
3. Click [Stake SOL].
4. Enter the amount to stake. Read and agree to the terms and click [Confirm] to receive BNSOL in the Spot Wallet.
🔼 Use cases of BNSOL
There're lots of unique use cases for liquid Staked tokens (LSTs) and specially for BNSOL. Let's Find out Top 5 Use-Cases of latest Binance Backed Solana LST
Liquidity farming
Liquidity farming is a popular earning mechanic in DeFi. It involves providing liquidity to decentralized exchanges (DEXs) and earning rewards for doing so.
To start liquidity farming, you’ll need to provide a pair of tokens to a liquidity pool. For example, you can pair BNSOL with another token supported by the pool, such as SOL.
Users who swap between the pairs in the pool pay a fee to you as a liquidity provider. However, please take note of the risk of impermanent loss when entering liquidity pools.
Some examples that allow users to farm yields with BNSOL by forming liquidity pool tokens include DEXes, such as Raydium etc.
Lending and borrowing protocols
BNSOL can be leveraged within lending and borrowing protocols to earn yields or enhance capital efficiency. For example, you can use BNSOL as collateral to borrow other assets to enhance capital efficiency on various DeFi protocols on Solana Network.
Structured products and yield aggregators
Structured products and yield aggregators offer advanced DeFi opportunities for optimizing returns on your crypto assets.
BNSOL can be utilized to access these structured yield tokens, allowing you to participate in more complex DeFi strategies.
Restaking protocols
Restaking means utilizing SOL that has already been staked for additional rewards. In most cases, users can restake natively staked SOL and liquid staked tokens, such as BNSOL, on certain restaking protocols’ smart contracts (such as Solayer). This allows BNSOL to be applied to more applications on the Solana network, while also offering BNSOL holders the opportunity to earn additional rewards.
Diverse earning opportunities
If you’re looking for simple yields, there’s plenty to find on Binance. You can also head into the decentralized world for more structured products and offerings. As always, make sure to do your own research before investing in a project or product.
🏵️ Difference Between BNSOL & Normal Staking
Although Binance offers Both Normal Staking through Earn Services & Liquid Staking through BNSOL, but both the products have different capabilities and unique features.
The first difference is in the lock period. For standard SOL locked products, the lock duration can be 30, 60, 90, or 120 days. You can instantly unlock your stake, but you'll forfeit all accrued rewards. On the other hand, the new SOL staking has an unlock period of up to 4 days, or you can instantly sell BNSOL for SOL on the spot market.
The second key difference is the APR structure. In normal SOL locked products, you receive a fixed APR, which depends on the lock duration. In contrast, SOL staking offers a dynamic APR.
The third and most important difference is the benefits. With standard SOL locked products, you'll only receive additional SOL as your APR return. However, with SOL staking, you receive BNSOL, a high-utility liquid staking token (LST) that provides greater utility and flexibility on Binance and Web3.
🔺Check Full Information About BNSOL
🔼 Data Credit
> Solayer
> Binance
> Cointelegraph
