How to provide liquidity with $SOL (Solana) on Binance and why it can be profitable in the long run?
If you have SOL in your portfolio, Binance allows you to put it to work through liquidity pools directly from their platform, without leaving the ecosystem.
How to do it?
1. Go to the Binance Earn section > Liquidity Farming.
2. Look for the pool that includes SOL, such as SOL/USDT or SOL/BNB.
3. Provide liquidity in both tokens (in equal proportions).
4. Start earning rewards in real time.
What do you earn?
Transaction fees within the pool.
Additional rewards in tokens, depending on the pair.
Compound interest if you reinvest what you earn.
And the risks?
Impermanent loss, if there is a significant price difference between the tokens in the pair.
Market risks: price drops may affect your final earnings.
Is it worth it in the long run?
If you trust the Solana ecosystem and are willing to hold your position, you can efficiently generate passive income, taking advantage of Binance's liquidity and security.
Have you already tried liquidity with SOL on Binance? Share your experience below.
