Binance continues to innovate with new solutions to make it easier to access cryptocurrency earnings.

In the past few months, we have seen a huge growth in the liquid staking market on Proof-of-Stake networks like Solana and Ethereum, which has provided many with low-risk profit opportunities.

With this principle, Binance recently launched BNSOL as one of its staking solutions on the Solana network.

In this article, we will delve into what BNSOL is, how it works, and how you can leverage it to make a profit with minimal risk.

Staking on Solana Network

Without a doubt, $SOL has proven itself as one of the most important blockchain networks in the market recently, which is reflected in its coin, which has achieved an increase of more than 40% since the beginning of the year, which is a performance three times better than $ETH in the same period.
In conjunction with this massive growth, we have recently seen significant growth in Solana network infrastructure services, specifically staking, which is the backbone of any Proof-of-Stake (POS) network.
Considering that 66% of the total supply of Solana is reserved for staking on the network, this number indicates the great value of the Solana network.
But despite the good opportunities to profit from staking, many Solana holders still have not taken advantage of this opportunity.
Therefore,Binance Launches BNSOLIt will provide strong opportunities for Solana holders.

What is BNSOL coin?

$BNSOL is the liquid staking token of the Solana network and is operated by Binance.
To understand how it works, you must first understand the difference between liquid staking and traditional staking.
In traditional staking, you have to lock up your coins, which blocks your access to liquidity. In liquid staking, you lock up your coins for staking and in return the protocol issues you liquid staking coins that are equivalent in Solana value, allowing you to fully access your liquidity.

By the same mechanism, BNSOL works as a liquid staking coin. Instead of staking coins for traditional staking, you can stake your coins with Binance and you will get BNSOL coins.

Some liquid staking coins guarantee 1:1 conversion with the native currency, but BNSOL follows a slightly different system.
BNSOL does not convert 1:1 because the staking return is reflected in the conversion rate between the two coins.
Let's give a practical example to make this better clear:
Let's imagine you currently own 1 Solana and the conversion rate is 1.05 BNSOL per 1 SOL.
After the conversion, you will have 1.05 BNSOL. Let's say that after 3 months you decide to take back the original SOL, at which time the conversion rate increases to reflect the return earned over the 3-month period to 1.1 BNSOL per 1 SOL.
This means that instead of getting back 1 SOL, you will get back 1.047 SOL.
With this, you will have received the original amount of 1 SOL plus 0.047 SOL, which is the return you earned during the staking period.
This way, you achieve the return without having to reserve your liquidity with minimal risk.

How to get BNSOL?

Simply follow these three steps:

1- From the home page, search forSOL Staking
2- Then click on Stake SOL
3- Then enter the amount you want to transfer to BNSOL and click Confirm.

This way, you are now participating in Solana staking with your coins and earning returns.
It is worth noting that the conversion rate is adjusted with each Epoch on the Solana network, which takes place within a period of two to three days.
Therefore, if you want to withdraw your coins, it is better to do so right after the Epoch ends so that you do not miss out on the returns made between one Epoch and another.

How to get the most out of BNSOL?

The launch of BNSOL is still in its early stages, as the service was launched on Binance this month. However, Binance explained in its BNSOL launch statement that it is looking to integrate the token with DeFi protocols on the Solana network, which will open up a wide range of opportunities to employ and benefit from the token while simultaneously earning the SOL staking income.