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Binance noted that the success of the new staking product will largely depend on the adoption of the BNSOL token across Solana’s decentralized finance sector.
Binance, the world’s largest cryptocurrency exchange by trading volume, is expanding its services with the upcoming launch of a new Solana (SOL) staking product. According to a press release shared with Coinspeaker, the new offering, set to go live in late September will allow users to stake their SOL tokens securely on the exchange while retaining access to their funds, thanks to the introduction of Binance Staked SOL (BNSOL).
A New Era of Flexible Staking
Binance stated that BNSOL is designed with dual functionality. This new digital asset represents the staked tokens and at the same time, serves as a liquid staking token. This means users can keep earning staking rewards while still being able to trade, lend, or use their tokens for other activities within the Binance ecosystem or other decentralized finance (DeFi) platforms.
While the company is yet to disclose the exact date for the planned launch, Binance head of regional markets Vishal Sacheendran said the upcoming product is particularly beneficial to users looking to maximize the potential of their staked Solana token.
“Unlike native staking, which locks up assets, BNSOL allows users to unlock liquidity, enjoy continuous reward accumulation, and seamlessly participate in both the Binance platform and the broader DeFi ecosystem, making it an ideal solution for those looking to maximize the potential of their staked Solana tokens,” Sacheendran said.
Dynamic APR and Redemption Features
The new offering is built using Solana’s Stake Pool Program, a robust framework developed by Solana Labs, and has been audited by multiple security firms to ensure the safety of users’ funds. Additionally, the product has been validated by several other liquid staking token (LST) providers in the industry.
The company’s decision to build on this foundation highlights the exchange’s commitment to providing a secure and reliable staking experience for users.
In terms of the annual percentage rate (APR), Binance explained that it will adjust based on current Solana staking rewards. The APR is linked to a commission ratio that depends on accrued rewards and the value of BNSOL relative to SOL.
Users will also have the option to redeem their tokens, although they must wait through a designated redemption period. This approach offers flexibility while ensuring necessary security protocols are in place to protect staked assets.
Binance’s New Product Hinges on BNSOL Adoption
Binance noted that the success of the new staking product will largely depend on the adoption of the BNSOL token across Solana’s decentralized finance sector. The exchange believes that as more users engage with the token, its ability to unlock liquidity while generating rewards will boost its utility within Solana’s ecosystem.
According to the company, this increased usage could drive further growth and innovation within the network.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
