SOL is the native cryptocurrency of the Solana blockchain, used for transactions, staking, and governance. BNSOL, or Binance Staked SOL, is a liquid staking token offered by Binance. When users stake their SOL on Binance, they receive BNSOL in return.
The key benefit of BNSOL is that it allows SOL holders to earn staking rewards while maintaining liquidity. Unlike traditional staking where SOL would be locked up, BNSOL can be traded, lent, or used in various DeFi applications. This unlocks capital efficiency, enabling users to participate in the Solana ecosystem's yield opportunities without sacrificing access to their staked assets. BNSOL's value accumulates staking rewards, reflected in its increasing conversion rate to SOL over time.