Binance Staked SOL (BNSOL) is a liquid staking token issued by Binance when you stake your Solana (SOL) on their platform. It represents your staked SOL plus the accumulated staking rewards. A key benefit of BNSOL is that it provides liquidity to your staked assets, unlike traditional staking where SOL is locked. You can trade, transfer, or use BNSOL in various DeFi applications on the Solana network or within the Binance ecosystem while still earning staking rewards.
The value of BNSOL increases over time relative to SOL as staking rewards accrue, which is reflected in the BNSOL/SOL conversion rate updated by Binance. You can redeem your BNSOL for SOL, typically taking around four days.
Holding BNSOL allows you to automatically earn SOL staking rewards. It offers flexibility as you can trade it on Binance, use it as collateral, or participate in DeFi protocols for additional yield. You can also transfer it to a personal wallet and use it outside Binance while still accruing rewards. Selling BNSOL on the market also provides a quicker exit than waiting for the unstaking period of native SOL.
However, there are risks associated with BNSOL, including price volatility of SOL and BNSOL, potential smart contract risks if used in DeFi, and centralization concerns related to staking through a large exchange like Binance. Users are also dependent on Binance's platform.
You obtain BNSOL by staking SOL on Binance or by purchasing it on the Binance spot market. The price and market capitalization of BNSOL fluctuate with the broader cryptocurrency market. It's essential to understand these risks and conduct your own research before using BNSOL.