Main points
Binance allows you to stake SOL and receive BNSOL in exchange, a liquid staking token that can be used in various Binance products and external DeFi applications.
BNSOL provides flexible returns, supports liquidity, and allows you to benefit from a secure Binance ecosystem.
BNSOL holders can trade, stake, invest, provide loans, and use tokens in other ways. This way, users gain access to their SOL locked in staking while simultaneously earning staking rewards.
Don't miss the launch in September and get ready for SOL staking on Binance!
SOL staking on Binance is an opportunity to earn flexible liquid rewards in SOL with a single click.
After our teaser at the end of August, we are happy to reveal more details about the upcoming SOL staking on Binance! It will allow for flexible earnings and access to the Binance ecosystem.
Let’s explore what SOL staking on Binance is, what benefits it provides, and how to participate in it.
What is SOL staking on Binance and BNSOL?
Binance allows staking SOL tokens in exchange for BNSOL, liquid staking tokens (LST). BNSOL can be used for trading, loans, or providing liquidity while simultaneously earning staking rewards.
In simple terms, SOL staking on Binance allows you to earn additional income on SOL tokens that are being staked. Staking rewards are accrued based on the BNSOL:SOL conversion rate, even if BNSOL is used in other Binance products or external DeFi applications.
SOL staking on Binance: staking, rewards, redemption, and withdrawal
Let’s delve into each of the key concepts: staking, rewards, redemption, and withdrawal of assets from staking.
SOL Staking
When you stake SOL, BNSOL, a tokenized representation of SOL in staking, will be credited to your spot wallet. The amount of BNSOL received depends on the BNSOL:SOL conversion rate displayed on the SOL staking page on Binance.
Value and rewards of BNSOL
Each BNSOL represents 1 SOL in staking plus staking rewards accumulated since 06:04:38 (UTC) 26.08.2024 in epoch 661 on the Solana network. As staking rewards accumulate, the value of 1 BNSOL will increasingly exceed the value of 1 SOL.
The BNSOL:SOL conversion rate is updated every Solana epoch (approximately every 2 days) to reflect accrued rewards.
Redemption
You can exchange BNSOL for SOL during redemption based on the current BNSOL:SOL conversion rate.
Please note that there is a waiting period of about 4 days between submitting a redemption request and receiving the withdrawn SOL, and there may be processing limitations.
Withdrawal of BNSOL to external platforms
BNSOL will continue to earn staking rewards even if you use it in other Binance products or external DeFi applications. You can withdraw BNSOL to another wallet, such as the Binance Web3 wallet, using the standard process for withdrawing digital assets from a Binance account.
Let’s look at how this process will work:
Stake SOL and find BNSOL tokens in your Binance spot wallet.
Create a backup of the Binance Web3 wallet if you haven’t done so already.
Click 'Transfer' in the Binance Web3 wallet to transfer BNSOL to your wallet.
Open the search section to find your favorite DApp and start using BNSOL.
Benefits of SOL staking on Binance
1. Access to liquidity
SOL staking on Binance allows you to stake SOL and receive BNSOL, a liquid staking token, in return. BNSOL enables the use of staked assets: trading, lending, or providing liquidity, while earning staking rewards. In native staking on the Solana network, such flexibility is usually not available, as your tokens are simply locked and remain inaccessible.
2. Staking rewards
As staking rewards accumulate, the value of BNSOL increasingly exceeds the value of SOL. Meanwhile, native staking on Solana and Binance Earn products with fixed terms lock your tokens for a fixed period and limit quick access to rewards.
3. Flexible redemption
SOL staking on Binance offers a flexible exit policy. You can:
Exchange BNSOL for SOL at any time by selling it on the spot market.
Redeem BNSOL at the conversion rate specified on the SOL staking page on Binance (when it is active) and wait for the redemption period.
4. Various use cases
In the near future, BNSOL will be usable in Binance products and DeFi protocols, so you can get the most benefit from SOL staking. Here are the scenarios in which BNSOL can be applied:
Staking in DeFi protocols, where you can engage in liquidity farming, lending and borrowing, restaking, and other activities.
Trading on the Binance spot market, as well as using BNSOL as collateral in margin and futures trading (these features will be available later).
Using BNSOL as collateral for cryptocurrency loans. This strategy can significantly enhance capital efficiency as it allows you to earn SOL staking rewards while borrowing funds for other strategies.
Increasing liquidity of staked assets, reducing alternative costs of native staking, and advantages in terms of capital efficiency.
5. One-click staking
Staking is easy and convenient. It is available even for beginners: with just one click, you can stake SOL and start earning rewards.
6. Reliable platform
Binance is a world-renowned platform with a good reputation. Staking users on Binance are protected by reliable security measures and support services.
7. Security
SOL staking on Binance was developed based on the original staking pool program supported by Solana Labs — a reliable foundation, audited by several specialized companies to ensure the safety of funds. This staking pool program has also been thoroughly vetted by various liquid staking token (LST) providers, further confirming its reliability and safety.
The difference between SOL staking on Binance, fixed-term Earn products, and native Solana staking
To determine if SOL staking on Binance is right for you, we compared it with two other popular options: fixed-term Earn products and native Solana staking.
SOL Staking (Binance)
Fixed-term products for SOL (Binance)
Native SOL staking
Platform
Binance
Binance
Solana Wallet
Issued utility token
BNSOL improves
flexibility and opportunities
on Binance and in Web3
Annual percentage rate (APR)
Dynamic APR
Fixed APR
(depends on the lock-up period)
Dynamic APR
Network fees
Free of charge
Free of charge
Low network fees
Quota
High personal quota
Personal quota
depends on the lock-up period
Unlimited quota
Unlocking conditions
Up to 4 days,
or instantly sell BNSOL for SOL
on the spot market
30, 60, 90, or 120 days
or instant unlocking
with complete loss of rewards
Approximately 2 days
How to participate in SOL staking on Binance?
Our users will be able to participate in SOL staking on Binance in just three simple steps:
Start staking: stake SOL and receive BNSOL as a tokenized representation of SOL in staking.
Earn SOL: receive rewards for staking SOL while holding BNSOL.
Redeem SOL: exchange BNSOL for SOL at the specified conversion rate.
To prepare for the launch of SOL staking on Binance, go to the exchange and buy SOL!
Trade SOL
Stay tuned for the launch of SOL staking on Binance in September
Our community will soon be able to enjoy the benefits described above. Stay tuned for information and announcements as the launch of SOL staking approaches!