nftfi

What are Soulbound Tokens?

As mentioned, soulbound tokens are a type of cryptocurrency that is bound to a particular account or user. This means that once the token has been assigned to a specific user, it cannot be transferred or traded like other cryptocurrencies.

Soulbound tokens are designed to provide an added layer of security and control for users. By ensuring that tokens can only be used by the account to which they are bound, users can have greater peace of mind knowing that their tokens are less susceptible to theft or misuse.

How do Soulbound Tokens Work?

Soulbound tokens work by using a combination of blockchain technology and smart contracts. When a soulbound token is created, it is assigned to a particular account or user using a unique identifier such as a public key or wallet address.

Once the token has been assigned to the user, it is essentially locked to that account or user. This means that the token cannot be transferred or traded like other cryptocurrencies without first being unlocked or released from the user's account.

To unlock a soulbound token, the user typically needs to provide some form of verification such as a password or biometric identification. Once the token has been unlocked, it can then be transferred or traded like any other cryptocurrency.

Advantages of Soulbound Tokens

There are several advantages to using soulbound tokens, including:

Enhanced Security: By ensuring that tokens can only be used by the account to which they are bound, users can have greater peace of mind knowing that their tokens are less susceptible to theft or misuse.

Increased Control: By limiting the transferability of tokens, users can have greater control over their assets and how they are used.

Reduced Risk of Fraud: By making it more difficult to transfer or trade tokens, soulbound tokens can help to reduce the risk of fraud or other malicious activities.

Disadvantages of Soulbound Tokens

There are also some disadvantages to using soulbound tokens, including:

Reduced Liquidity: By limiting the transferability of tokens, soulbound tokens can be less liquid than other cryptocurrencies.

Potential for User Error: If a user forgets their password or loses access to their account, they may be unable to access or transfer their soulbound tokens.

Limited Functionality: Soulbound tokens may have limited functionality compared to other cryptocurrencies, as they are designed to be used primarily as a secure store of value rather than a medium of exchange.

Difference between NFTs and SBTs

One of the key differences between SBTs and NFTs is their purpose. SBTs are designed to raise capital for a project or company, while NFTs are used to represent a unique item or piece of content. SBTs are regulated by securities laws and must comply with regulatory requirements, while NFTs are not subject to the same regulatory oversight.

Another difference between SBTs and NFTs is their liquidity. SBTs are traded on regulated exchanges, which means that investors can easily buy and sell them. NFTs, on the other hand, are traded on decentralized marketplaces, which means that their liquidity can vary greatly depending on the demand for a particular item.

Binance's own SBT - Binance Account Bound token (BAB)

Binance Account Bound (BAB) tokens are the credentials of Binance users that have passed KYC. Since it is a type of Soulbound Token (SBT), it has three key properties: it is non-transferable, it cannot be transferred from one address to another, and it is revocable. It can be revoked by issuers. One UID can only have one BAB token at one time and on one chain.

The following information can be obtained from Binance website for BAB

Where can I view my BAB token?

The BAB token will be issued to the address you provided and you can check your BAB token on any third-party wallet that supports NFTs. Before you view your BAB token, you need to make sure your wallet network has selected the BNB Smart Chain.

What if I lost my access to the BAB token?

If you somehow lose access to your wallet, you can revoke the token with your Binance account. Once revoked, you can mint again after 72 hours.

Is there any way to transfer my BAB token to another address?

If you want to transfer your BAB token to another address, you can revoke it and then mint it to your new address. Please be aware that after you revoke your BAB token, you will have to wait 72 hours before you can mint again.

Incentives on BNB Chain for using BAB tokens

The following list outlines the relevant projects set to be the world’s first Web3 platforms to adopt Soulbound tokens:

Stader

Extra stake rewards up to 25% for BAB token holders. BAB token will also be used to identify unique KYCed users who can participate in the referral program. These holders can refer other BAB token holders and earn rewards.

Gunstar Metaverse

Claim Gunstar Metaverse Badge (GMB) which reduces Gunstar Metaverse Marketplace fee, increases attack & defense power in Battle PvP, offers free tickets or items monthly in Battle PvP, provides priority customer care (early access to news, events, recap, etc.), and offers free tickets for Gunstar metaverse events and tournaments.

Ancient8

Free-to-Mint Ancient8 x BAB Token OAT for all BAB Token holders. Simply complete the social tasks through Galxe and join the “Ancient8 Community Duathlon'' Tournament. Stand a chance to win part of a 1100 BUSD prize pool.

X Metaverse

X Metaverse will be awarding BAB token holders tier 3 Gems in their gaming ecosystem, providing holders special perks in PVP matches.

Plant Empires

Plant Empires have created a unique Lucky Wheel on their Dapp site. BAB token holders will receive many valuable rewards including in-game items and NFTs by spinning the wheel.

Izumi

Izumi is creating a universal giveaway for every BAB participant that participates in their campaign, with a prize pool of 1000USD up for grabs.

Yuliverse

BAB holders in Yuliverse will be entitled for an exclusive airdrop and in game characters.

Tap Fantasy

BAB holders that complete a task during the event would be entitled to a special Tap Fantasy gift pack.

Woo Network

BAB token holders will be able to take part in a lottery of 5,000 xWOO. Users can maximize their chances of winning by trying different features of WOOFi to earn additional tickets up to a maximum of 4 tries.

Dracoo World

BAB holders get 1 extra Fighting Ticket daily to enter Dracoo World Cup Prediction in game.

TopGoal

Each BAB token holder can get 3 All Star trial cards to play TopManager S1 and earn lucrative token rewards for free, including their metaverse utility token $TMT and their DAO token $GOAL.

OpenOcean

Users who hold their own BAB (Binance account bound token) or Glory Pass are entitled to a one-time free lottery ticket (no prediction needed) just connect your wallet to OpenOcean and claim your ticket. Holders who make a swap receive 1x EXTRA ticket in addition to their prediction from the trade.

Conclusion

Soul-bound tokens are a relatively new concept in the world of cryptocurrency, but they have the potential to significantly increase the security and accountability of digital assets. By linking tokens to a specific account or wallet address, it becomes much more difficult for someone to steal or misuse the tokens without the account owner's permission. Binance is the only cryptocurrency exchange so far that has implemented soul-bound tokens. While the concept is still relatively new, it will be interesting to see how soul-bound tokens are used in the future and whether they become more widespread in the cryptocurrency industry.

#Binance #nftfi #Web3 #cryptoadoption #NFT

While everyone is eyeing 10,000% APY, I set my sights on new areas that haven't been widely looked at yet. #GHST

NFTs have begun to sprout the seeds of a token economy, and I think they will rise collectively, not just the price of a certain token. #RARI

While the concepts of digital art, collectibles, and virtual lands are often touted as the backbone of the NFT ecosystem, it’s worth noting that some projects are starting to bridge the gap with popular DeFi and governance tokens.

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Aavegotchi——GHST#nftfi

The world of cryptocurrencies has expanded tremendously in recent years. Along with the development of blockchain technology, various applications have emerged in the financial sector. Staking, Yield Farming, and Liquidity Mining are three such applications that have become increasingly popular in the crypto world. These three methods are used to generate income from cryptocurrencies, but they work in different ways. In this article, we will explore the differences between Staking, Yield Farming, and Liquidity Mining.

Staking

Staking is a process that allows investors to hold their cryptocurrencies and earn rewards for validating transactions on a blockchain network. It involves locking up a certain amount of cryptocurrency as collateral to support the network's security and earn rewards. The concept of staking is similar to that of earning interest on a bank deposit. However, instead of earning interest, stakers earn cryptocurrency rewards. Staking is commonly used in Proof of Stake (PoS) blockchain networks, which rely on stakers to validate transactions and secure the network.

To stake a cryptocurrency, investors must hold a certain amount of the cryptocurrency and set it aside as collateral. The amount of cryptocurrency required for staking varies depending on the network's requirements. Once staked, the cryptocurrency is locked up for a specified period, during which the investor cannot use or transfer it. In exchange, stakers receive rewards for validating transactions and supporting the network. These rewards are usually a percentage of the staked cryptocurrency or additional tokens generated by the network.

Yield Farming

Yield Farming, also known as Liquidity Farming, is a process that allows investors to earn rewards by lending their cryptocurrency holdings to liquidity pools. Liquidity pools are pools of cryptocurrency funds that are used to facilitate trading on decentralized exchanges. Yield Farming involves investors depositing their cryptocurrency into a liquidity pool, which then earns interest or rewards from the pool's trading fees. These rewards can be in the form of cryptocurrency tokens, which can be traded or sold for a profit.

Yield Farming is commonly used in Decentralized Finance (DeFi) applications, which allow users to access financial services without the need for intermediaries such as banks or financial institutions. Yield Farming is a way for investors to earn passive income from their cryptocurrency holdings while contributing to the liquidity and stability of the DeFi ecosystem.

Liquidity Mining

Liquidity Mining is a process that allows investors to earn rewards by providing liquidity to a cryptocurrency exchange. This involves investors depositing their cryptocurrency into an exchange's liquidity pool, which is used to facilitate trading on the exchange. Liquidity providers earn rewards based on the amount of liquidity they provide to the pool. These rewards are usually in the form of the exchange's native cryptocurrency or additional tokens generated by the network.

Liquidity Mining is similar to Yield Farming in that it involves investors depositing their cryptocurrency into a liquidity pool to earn rewards. However, Liquidity Mining is specific to cryptocurrency exchanges, while Yield Farming can be used in a variety of DeFi applications.

Key Differences

Staking involves locking up tokens to participate in network validation, while yield farming and liquidity mining involve providing liquidity to decentralized platforms.

Yield farming involves lending or borrowing assets on AMMs, while liquidity mining involves contributing to liquidity pools on specific DeFi platforms.

Staking is generally considered low-risk, low-reward, while yield farming and liquidity mining can offer higher rewards but with higher risks.

The rewards earned through staking are usually paid out in the same cryptocurrency being staked, while yield farming and liquidity mining rewards are often paid out in new tokens created specifically for the program.

Conclusion

In summary, liquidity mining is a byproduct of yield farming, which in turn is a byproduct of staking. These approaches are all ways to utilize dormant cryptocurrency assets. Staking aims to maintain the safety of the blockchain network, yield farming aims to maximize returns, and liquidity mining aims to provide liquidity to DeFi protocols.

The potential annual percentage yields (APYs) can be quite attractive, with numerous options to choose from. However, it's essential to exercise caution by investigating the potential risks, understanding why your tokens are needed, and comprehending how returns are generated.

#DeFi #nftfi #Staking #Binance #BinanceAcademy