Binance Unveils Liquid Staking Token BNSOL on Solana

Binance, the world’s largest cryptocurrency exchange, plans to launch its Solana staking product in late September 2024.

Binance will list its Solana liquid staking product “BNSOL” later this month, allowing users to stake SOL tokens to earn a portion of network fees, while also creating a liquid staking token. Users can then use this token on other protocols, even while the underlying SOL token remains locked.

🚨NEWS: @binance announced in a press release that its Solana Staking product, BNSOL, will launch in late September 2024. Users can stake SOL tokens, earn dynamic rewards, and unlock liquidity while maintaining full control over their assets. pic.twitter.com/t070ywLulj— SolanaFloor (@SolanaFloor) September 3, 2024

Vishal Sacheendran, Head of Regional Markets at Binance, said in a statement:

"Unlike native staking, which requires locking assets, BNSOL allows users to unlock liquidity, accumulate rewards continuously, and participate seamlessly in both the Binance platform and the broader DeFi ecosystem. This is the ideal solution for those who want to maximize the benefits of staking Solana.

The usefulness of BNSOL will depend on its adoption in the DeFi space, especially on the Solana ecosystem.

Liquid staking is the act of locking up native assets on blockchain networks like Solana or Ethereum, but will receive another token representing the locked amount for continued use on other DeFi platforms.

Binance will apply a “dynamic APR” for BNSOL, which is adjusted based on Solana's current staking interest rate and the commission rate based on the accumulated reward value. The conversion of BNSOL back to SOL may take some time.

Details of this product will be officially announced by Binance at the end of September 2024.

As reported, not only Binance but also crypto exchanges Bybit and Bitget are also planning to list liquid staking tokens on the Sanctum platform.