Crypto exchange Binance is looking to launch its Solana staking product by the end of September.
Background
- BNSOL will help users stake SOL and earn a portion of fees
- They can mint a liquid staking token parallelly that can be deployed in other ecosystems when their underlying tokens are locked up
- The exchange is programming the tokens with a “dynamic APR”
- That will be tweaked depending on current Solana staking payouts
- Furthermore, the system will stick to a commission ratio based on the amount of accrued rewards and the value of BNSOL relative to SOL
- With respect to redemptions, users will be in a position to redeem their tokens subject to the waiting period
Why should you pay attention?
- BNSOL’s adoption taking off would redefine staking associated with centralized exchanges
- Solana’s liquid staking ecosystem is ever-expanding, with new players consistently stepping into the arena with their own refined product variants
- The liquid staking ecosystem on Solana has 2x’d YTD, from a TVL of $1.7 billion on Jan. 1 to $3.6 billion at press time
- Jito, Marinade, and Sanctum currently command a 3/4th share of the market, and now Binance has a chance to grab a piece of the pie
Who said what?
Vishal Sacheendran, head of regional markets at Binance, said,
“Unlike native staking, which locks up assets, BNSOL allows users to unlock liquidity, enjoy continuous reward accumulation, and seamlessly participate in both the Binance platform and the broader DeFi ecosystem, making it an ideal solution for those looking to maximize the potential of their staked Solana tokens.”
In other institutional x DeFi news
- Defending allegations, BitGo CEO Mike Belshe exclaimed that Wrapped Bitcoin skeptics ain’t being “intellectually honest” about their concerns. He said,
“Let’s be intellectually honest here: criticizing our efforts to decentralize Wrapped Bitcoin just to boost their token’s value is beyond ridiculous."
- In mid-August, Coinbase teased cbBTC — an alternative to BitGo's Wrapped Bitcoin wBTC set to run on its own layer-2 blockchain Base. The team plans to build a "massive Bitcoin economy" on the network
