Binance Chain (BNB Chain), the home of the BNB Smart Chain (BSC), announced a significant upgrade enabling native liquid staking directly on BSC. This move comes as part of a broader shift to migrate functionalities from the soon-to-be-sunset BNB Beacon Chain.
What is Liquid Staking?
Traditional staking often locks up your crypto assets for a specific period. Liquid staking removes this limitation by issuing tradable tokens representing your staked crypto. With BNB Chain’s native liquid staking, users can stake their BNB directly on BSC and receive liquid staking tokens (LSD) in return. These LSD tokens can be used for DeFi activities like lending or borrowing, allowing users to earn additional rewards while their BNB contributes to network security.
Benefits of Native Liquid Staking on BSC
- Increased Flexibility: Stake and participate in DeFi activities simultaneously, maximizing returns on your BNB holdings.
- Enhanced Security: More users staking BNB strengthens BSC’s overall security through increased decentralization.
- High APY Rewards: Earn attractive rewards for staking your BNB on the secure and established BSC network.
- Multiple MEV Benefits: Benefit from potential additional rewards through MEV (Maximal Extractable Value) opportunities.
Timeline and Migration
The BNB Beacon Chain is scheduled for a complete shutdown by June 2024. Before that, functionalities like staking will be seamlessly integrated into BSC. The launch of native liquid staking on BSC is expected to happen sometime between April and early May 2024.
Source: Binance
Impact on Users
This integration offers significant advantages for BNB holders and DeFi users on BSC. By enabling native liquid staking, BNB Chain creates a more user-friendly and rewarding staking experience. Users can now enjoy the benefits of staking without sacrificing asset liquidity, opening doors for more active participation in the BSC ecosystem.
