Bitcoin staking, or yield management, works differently from cryptocurrencies using the Proof-of-Stake (PoS) mechanism. However, it is not entirely condemnable, as centralized exchanges, DeFi platforms, and synthetic or derivative markets can offer bitcoin returns. Binance, the world’s largest centralized cryptocurrency exchange, introduced on-chain returns last week.
As part of the promotion, users can access the Bitcoin investment protocol, which offers a 12% annual return (APY) on the first thousand BTC on Binance. The decentralized application has a total locked value (TVL) of more than $3.5 billion, according to DeFi Llama. The protocol’s TVL jumped following Binance’s campaign, making it the 12th largest DeFi protocol.
Bitcoin yield management is not like other staking services because the Bitcoin network is based on the Proof-of-Work (PoW) mechanism. Through programs like Binance’s promotion, users can earn 1-5% annual returns, but the risk of bankruptcy of the platform exists in each case. Through DeFi protocols, users have the opportunity to benefit from the returns in a wrapped form.
The Babylon airdrop is coming, and users who pledge their BTC reserves through Binance’s promotion will also receive points, which will later form the basis of native Babylon rewards.
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<p>The post Bitcoin Staking Alternatives: Exploring Centralized Exchanges, DeFi Platforms, and Synthetic Markets first appeared on CoinBuzzFeed.</p>
