Binance, the world’s largest cryptocurrency exchange, announced plans to introduce a new Solana staking product called BNSOL by the end of September. This new tool will allow users to stake their Solana (SOL) tokens and earn a portion of the fees paid out by the network, while also minting a liquid staking token that can be used even while the underlying tokens are locked up.
Unlike traditional native staking, which requires assets to be locked up, BNSOL enables users to unlock liquidity, continuously accumulate rewards, and participate seamlessly in both the Binance platform and the broader decentralized finance (DeFi) ecosystem. Vishal Sacheendran, Binance’s head of regional markets, emphasized that BNSOL is an ideal solution for those looking to maximize the potential of their staked Solana tokens.
The effectiveness and utility of the BNSOL token will depend heavily on its adoption within the Solana-based DeFi sector. A liquid staking token like BNSOL represents a user’s assets that are locked up in a proof-of-stake blockchain, such as Solana, and allows them to trade or access DeFi platforms while their underlying collateral remains locked.
Binance is programming BNSOL with a “dynamic APR” (Annual Percentage Rate) that will adjust based on the current Solana staking payouts. The APR will also follow a commission ratio related to the amount of accrued rewards and the value of BNSOL relative to SOL. Users will be able to redeem their BNSOL tokens, although a redemption waiting period will apply.
Binance is expected to officially announce the launch of the BNSOL protocol later this month.