If you’re a SOL holder, You can earn extra rewards with BNSOL. Binance rolled out something you’ll want to know about: Binance SOL Staking.
This new token, $BNSOL, enables you to stake SOL tokens and earn a passive income from it.
What’s Binance SOL Staking?
Binance SOL Staking involves using the SOL deposited in Binance’s platform to get BNSOL tokens in return. BNSOL is a liquid staking token that is like SOL, except that its balance increases as you earn staking rewards.
You may also trade with it, use it as collateral in lending, or provide it as liquidity in DeFi. With traditional staking, the staked token is completely inaccessible till the staking period ends, but it is not the same thing here.
Source: X
How to Stake SOL via Binance
- Stake your SOL Tokens: Exchange your SOL for BNSOL using staking on Binance. You convert your token using the current conversion ratio.
- Hold and Earn Rewards: Your BNSOL increases with your staking rewards, and the more time you stake, the more rewards you will accumulate.
- Redeem or Use BNSOL: If you want to withdraw your staked SOL, you have the option to exchange BNSOL for SOL. You can convert it at the existing conversion rate or sell BNSOL on the Binance spot market.
Benefits of Binance SOL Staking?
- Unlock Liquidity: In traditional staking, you stake your funds and cannot use them during the staking period. While holding SOL tokens with BNSOL, you still earn with your SOL tokens, but you can also trade, lend, or farm with BNSOL.
- Earn Staking Rewards: The value of your token increases as you hold it, and you also earn staking rewards. This way, you are tapping into both sides, and you are getting staking rewards and liquidity at the same time.
- Flexible Redemption: If you wish to get back your SOL, you can exchange your BNSOL tokens at any time. You do not need to wait for long periods; you can trade or redeem at the current rate.
- Diverse Utility: This token is for staking and other services in Binance and DeFi. It expands staking beyond trading or using it in liquidity pools to provide collateral for borrowing and lending.
- Easy Staking: Binance has made it easy for you to stake SOL through a few clicks. You do not need any prior knowledge or follow some special steps to start using the tool.
Source: X
How Binance SOL Staking Compares to Other Staking Options
Binance SOL Staking offers some distinct advantages over other options like Binance Earn Locked Products or native Solana staking.
- Binance SOL Staking: It offers dynamic APRs with no network fees and the flexibility to unlock your staked tokens via trading.
- Binance Locked Products: They are available at fixed APRs depending on the lock-up period for the assets (for instance, 30 days, 60 days, or 90 days). This means that if you decide to unlock your assets earlier than the agreed time, you will lose some staking rewards.
- Solana Native Staking: It also supplies dynamic APRs. However, it has network fees and a different level of liquidity than Binance’s liquid stake solution.
If flexibility and liquidity are your top priorities, Binance SOL Staking is likely the better choice.
Source: X
Why Pick BNOL Staking?
BNSOL Staking shines by mixing staking perks with trading ease and options. If you like to keep your choices open, this service lets you earn rewards while using your staked assets for other DeFi-related activities.
So, you don’t need to stress about tricky steps. Binance’s staking makes it easy even for new users, and its tough safety measures keep your assets secure.
Conclusion
Binance SOL Staking with BNSOL changes the game for SOL token holders. It strikes the right balance between earning staking rewards and using your assets. If you’re into Solana, check out this cool new way to stake your SOL.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
