With the continuous development of blockchain technology, on-chain protocols provide investors with various opportunities to earn yields, such as staking, liquidity mining, and lending. However, for many ordinary users, on-chain operations can be complex and carry high risks, often deterring participation.
To address this issue, Binance has launched the on-chain earning product, providing users with an efficient, convenient, and secure way to participate without the need for complex on-chain operations to earn tokens or points.
Note: The on-chain earning page will go live on December 9, 2024, at 12:00 (GMT+8). Activity link: https://www.binance.com/zh-CN/earn/onchain-yields
What is on-chain earning?
On-chain earning is a financial service that helps users easily participate in on-chain protocols through their Binance accounts. With this service, users do not need to master complex blockchain technology operations or directly manage on-chain assets; instead, they can complete all operations through Binance's platform interface and easily obtain on-chain yields.
Compared to directly participating in on-chain protocols, the core advantage of on-chain earning lies in its convenience, transparency of earnings, and significantly reduced technical barriers for users.
Types of on-chain earning
Binance's on-chain earning provides two main reward distribution methods based on different protocol types:
1. On-chain rewards for supported tokens. For token rewards that Binance already supports, earnings will be directly credited to the user's Binance spot account. Users can check and manage their earnings through Binance's [Wallet] - [Financial Management] - [Staking] page.
2. On-chain rewards for unsupported tokens. For tokens or point rewards that Binance does not currently support, users need to provide their own on-chain wallet address. Rewards will be distributed to the specified on-chain address via Binance, and users can still view relevant records on the [Wallet] - [Financial Management] - [Staking] page.
Three highlights of on-chain earning
Simplifying complex operations: Traditional on-chain earning operations require users to create on-chain wallets, select protocols, participate in staking or liquidity mining, and other complex processes. On-chain earning simplifies all of this into a few clicks, with Binance handling protocol integration and operation management, allowing users to participate without a technical background.
Flexible redemption at any time: Users enjoy a shorter redemption waiting time for their funds and can re-engage in other protocols at any time, greatly enhancing the efficiency of fund utilization.
Diverse earnings: On-chain earning supports various on-chain protocols, including but not limited to staking and liquidity mining, allowing users to earn token or point rewards through these protocols.
The reward mechanism of on-chain earning
Reward start time: After the user subscribes, rewards will begin to accumulate at 08:00 (GMT+8) the next day (T+1).
Reward distribution time: User rewards will be distributed to their Binance accounts on the second day after subscription (T+2), and there may be a delay of up to 8 hours due to complex data processing.
Example: If a user stakes BTC on day T, rewards will start to accumulate from day T+1, and on day T+2, the user can view and begin to enjoy the rewards.
Earnings calculation: Binance will calculate rewards based on the specific rules of on-chain protocols, distributing them to users after deducting the appropriate fees. Due to differences in integration and calculation methods, the actual earnings from on-chain earning may differ from the on-chain protocol itself.
How to participate in on-chain earning?
1. Open the on-chain earning page. Log in to your Binance account, click the [Financial Management] menu at the top of the homepage, and select [High Yield] > [On-chain Earning].
2. Choose to participate in the protocol. On the on-chain earning page, select the protocol you are interested in, click the [Subscription] button, and confirm your subscription amount and estimated rewards.
3. Manage and view earnings. After successfully participating, rewards will be distributed according to time nodes. You can log in to the [Wallet] - [Financial Management] - [Staking] page at any time to view your earnings.
4. Apply for redemption. If you need to redeem assets, you can submit a redemption request through the on-chain earning page. Note that during the redemption period, assets will no longer enjoy daily rewards.
Please note: On-chain earning is a high-risk product that does not guarantee principal or returns. It involves potential risks such as smart contract vulnerabilities, market volatility, and protocol failures. Users must independently bear these risks, and Binance is not responsible for any asset losses caused by issues with on-chain protocols.
Summary and recommendations
Binance's on-chain earning offers users convenient and reliable on-chain yield opportunities while simplifying complex on-chain operation processes. However, users should carefully assess the potential risks before participating. If you are new to blockchain or seek a simple and efficient investment experience, on-chain earning is a good choice. It is recommended that users thoroughly understand the product rules before participating, and make rational decisions based on their investment goals and risk tolerance.