BlockBeats news, September 4, Binance plans to launch a Solana (SOL) staking product by the end of September, according to an announcement on Tuesday.
The tool, called BNSOL, will allow users to stake SOL tokens to receive a portion of the fees paid by the network and mint a liquid staking token that can be used while those underlying tokens are locked.
“Unlike native staking, BNSOL allows users to unlock liquidity, enjoy ongoing reward accumulation, and seamlessly participate in 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,” said Vishal Sacheendran, regional head of markets at Binance, in the statement.
Liquidity staking tokens are cryptocurrencies that represent assets locked by users in a Proof-of-Stake (PoS) blockchain like Solana or Ethereum, which allows users to trade and access DeFi platforms while the underlying collateral is locked.
Binance is programming a “dynamic annualized rate of return” (APR) for these tokens, which will adjust based on current Solana staking returns and follow a commission rate related to the amount of accrued rewards and the value of BNSOL relative to SOL. Users will be subject to a redemption waiting period when redeeming their tokens.
Binance will officially announce the launch of the protocol later this month. (The Block)
