If you are an SOL holder, you can earn additional rewards using BNSOL. Binance has introduced something you might want to know about: Binance SOL Staking.
This new token, $BNSOL, allows you to stake SOL tokens and earn passive income from them.
What is Binance SOL Staking?
“Unlike traditional staking that locks up assets, BNSOL unlocks liquidity, enables continuous rewards accumulation, and offers seamless participation in the DeFi ecosystem. This makes it a game-changer for users looking to maximize the potential of their Solana tokens they have staked,” said Vishal Sachindra, Head of Regional Markets at Binance, during the product unveiling.
The product is designed to provide users with more flexibility, allowing them to stake SOL tokens and receive BNSOL in return. BNSOL represents the SOL assets they have staked and allows users to continue earning rewards while being able to trade, lend, or spend the tokens across Binance’s various products and external DeFi platforms. This flexibility makes Binance one of the pioneers of liquid SOL token placement within major crypto exchanges.
In a notable move for the DeFi space, global blockchain platform Binance has launched a new Solana staking product, Binance SOL Staking, in September 2024. This innovation allows users to securely stake Solana (SOL) tokens while maintaining liquidity through Binance Staked SOL (BNSOL), a liquid staking token.
BNSOL Value and Rewards
Each BNSOL represents 1 SOL staked plus accumulated stake rewards since 2024-08-26, 06:04:38 (UTC) in epoch 661 on the Solana network. Over time, as SOL stake rewards accumulate, the value of 1 BNSOL gradually exceeds the value of 1 SOL.
The ratio is updated every Solana Era (roughly every two days) to reflect rewards earned via the BNSOL:SOL conversion ratio.
staking refund
You can exchange BNSOL for SOL based on the current conversion ratio BNSOL:SOL at the time of redemption.
Please note that there may be processing restrictions and a waiting period of approximately 4 days between submitting a refund request and receiving the refunded SOL.
Pull BNSOL to external platforms
Your BNSOL will continue to earn staking rewards even when used in other Binance products or external DeFi applications. You can withdraw your BNSOL to another wallet, such as the Binance Web3 Wallet, through the typical process of withdrawing digital assets from your Binance account.
Let's take a quick look at how this process works:
1. Stake SOL and find BNSOL tokens in your Binance Spot Wallet.
2. Create a Binance Web3 wallet and back it up if you haven't already.
3. Click [Transfer] in your Binance Web3 Wallet to transfer BNSOL to the wallet.
4. Head to [Discover] to find your favorite dApp to start using BNSOL.
What are the benefits of using Binance SOL Staking?
1. Freeing up liquidity
Binance SOL Staking allows you to stake your SOL tokens and receive BNSOL, a liquid staking token. Unlike native staking on the Solana network where your assets are locked, BNSOL allows you to use your staked assets to trade, lend, or provide liquidity, all while still earning staking rewards. This flexibility is often not available with native staking.
2. Earn participation rewards
BNSOL increases in value relative to SOL as staking rewards accumulate. Original staking on Solana and Binance Earn’s SOL Locked products require you to lock your tokens for a set period, limiting your ability to access your reward value immediately.
3. Flexible recovery
Binance SOL Staking offers a flexible exit policy. You can either:
1. Exchange your BNSOL for SOL when you need it by selling it on the spot market, giving you easy access to the assets you have staked.
2. Unlock your BNSOL at the specified conversion ratio on the Binance SOL Staking page (when active) and wait for the redemption waiting period.
4. Diverse benefit
BNSOL will be available for use and support across various Binance products and DeFi protocols in the near future, allowing you to maximize the utility of your SOL. For example, you may want to use your BNSOL to:
* Staking on DeFi protocols, where you can participate in liquidity farming, lending, borrowing, re-staking, and more activities.
* Trade on Binance Spot Market and use as collateral in margin and futures trading. Note that these features will only be available after the release at a later date.
* Borrowing using tokens as effective collateral for crypto loans. This strategy can greatly enhance capital efficiency and allow you to earn rewards for staking SOL and borrow funds for other strategies at the same time.
* Enhance the liquidity of the assets being bet on, reduce the opportunity cost of the original bet, and provide a significant advantage in terms of capital efficiency.
5. One-click betting
The process is simple and easy to use. With just one click, you can bet your SOL and start earning rewards, making it accessible to beginners.
6. Trusted platform
Binance is a globally recognized and trusted platform with a strong reputation for security and reliability. When you stake your SOL on Binance, you benefit from the strong security measures and customer support that the platform provides.
7. Security
Binance built its Solana Staking product using the native Stake Pool software managed by Solana Labs, a robust framework that has been audited by multiple security firms to ensure the safety of funds. This Stake Pool software has also been fully validated by multiple LST providers, further enhancing its reliability and security.
How to start staking SOL:
1. Buy SOL via Binance Spot Market or supported payment methods (Visa, Mastercard, Apple Pay, Google Pay, etc.) or deposit SOL to your Binance account.
2. Go to [Earning] and select [Simple Earning], then click [Share SOL].
3. Participate in SOL by entering the required amount and receive BNSOL in your Spot wallet.
Want to learn more?
We have shared a step-by-step video guide on how to bet on SOL with BNSOL in our Telegram group. Join us to watch the video and stay up to date with the latest tips and strategies to maximize your betting rewards!
