Binance $SOL Staking allows you to stake your SOL tokens on Binance and receive #BNSOL liquid staking tokens (LST) in return. BNSOL can be used for purposes such as trading, lending, or providing liquidity, while still earning staking rewards.
Simply put, Binance SOL Staking unlocks liquidity for your staked SOL tokens. BNSOL accumulates staking rewards through the BNSOL:SOL conversion rate, even when used in other products on Binance or external DeFi protocols.
Binance SOL Staking: Staking, Rewards, Withdrawal and Unwinding
Let’s delve a little deeper into the basic concepts of Binance SOL Staking: staking, rewards, unstaking, and withdrawal.
📌SOL Staking
When you stake your SOL tokens, you will receive BNSOL, a tokenized representation of your staked SOL in your Spot Wallet. The amount of BNSOL you receive is determined by the BNSOL:SOL conversion rate shown on the Binance SOL Staking page.
📌BNSOL’s Value and Awards
Each BNSOL represents 1 SOL staked and the staking rewards accumulated in epoch 661 on the Solana network, starting at 2024-08-26 06:04:38 (UTC). Over time, as SOL staking rewards accumulate, 1 BNSOL becomes worth more than 1 SOL. This ratio is updated every Solana epoch (approximately every 2 days) and reflects the accumulated rewards via the BNSOL:SOL conversion rate.
📌Solve
When you request to resolve your BNSOLs, you will receive SOLs based on the applicable BNSOL:SOL conversion rate. However, there may be a waiting period of approximately 4 days after submitting the resolution request for you to receive your resolved SOLs.
📌Taking BNSOL to External Platforms
Your BNSOLs will continue to earn staking rewards even if used on other Binance products or external DeFi applications. You can withdraw your BNSOLs to another wallet, such as Binance Web3 Wallet. The process is done in the following steps:
1. Stake your SOLs and find your BNSOL tokens in your Binance Spot Wallet.
2. Create and backup your Binance Web3 Wallet if you haven't already.
3. Click [Transfer] in your Binance Web3 Wallet and transfer your BNSOLs to your wallet.
4. Go to the [Discover] tab and find your favorite dApp where you can use your BNSOLs.
📌Advantages of Staking Binance SOL
1. Unlocking Liquidity
Binance SOL Staking allows you to stake your SOL tokens and receive the liquid staking token BNSOL in return. While direct staking on the Solana network locks your assets, with BNSOL you can use your staked assets for trading, lending, or providing liquidity, while still earning staking rewards. This flexibility is not typically available with native staking.
2. Earning Staking Rewards
As staking rewards accumulate, the value of BNSOL increases relative to SOL. Native staking on Solana and Binance Earn’s SOL Locked Products require you to lock your tokens for a certain period of time, restricting immediate access to your rewards.
3. Flexible Analysis
Binance SOL Staking offers a flexible exit policy.
- You can easily access your BNSOLs by selling them on the spot market whenever you want.
- You can unstake your BNSOLs according to the conversion rate on the Binance SOL Staking page and wait for the unstaking waiting period.
4. Various Areas of Use
BNSOL will be available across a variety of Binance products and DeFi protocols, allowing you to use your staked SOLs in the most efficient way. For example, you can use your BNSOLs to:
- You can perform operations such as providing liquidity, lending, borrowing, re-staking by staking in DeFi protocols.
- You can trade on the Binance spot market and use it as collateral for margin and futures (these features will be active later).
- You can use your tokens as effective collateral for borrowing. This strategy can significantly increase your capital efficiency.
- You can reduce the opportunity cost of local staking transactions by increasing the liquidity of your staked assets.
5. One Click Staking
The process is very simple and user-friendly. With just one click, you can start earning rewards by staking your SOLs. This makes it accessible, especially for beginners.
6. Trusted Platform
Binance is a global platform known for its security and reliability. When you stake your SOLs on Binance, you benefit from the platform's strong security measures and customer support services.
7. Security
Binance has developed the Solana Staking product using the Stake Pool Program maintained by Solana Labs. This program has been audited by many security firms to ensure the safety of funds.
