Binance to Launch Solana Staking Product

Binance, the world’s largest crypto exchange, plans to unveil a Solana (SOL) staking product by the end of September, as announced on Tuesday.

The so-called BNSOL tool will allow users to stake SOL tokens to earn a portion of fees paid out by the network and mint a liquid staking token for use while the underlying tokens are locked up.

“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,” said Vishal Sacheendran, head of regional markets at Binance.

The utility of the liquid BNSOL token will ultimately depend on its adoption within the Solana-based decentralized finance sector.

A liquid staking token is a type of cryptocurrency representing user assets locked up in proof-of-stake blockchains like Solana or Ethereum. This allows users to trade and access DeFi platforms while their underlying collateral remains locked.

Binance is programming the tokens with a “dynamic APR” adjusted based on current Solana staking payouts, following a commission ratio related to accrued rewards and the value of BNSOL relative to SOL. Users will have the ability to redeem their tokens, subject to a waiting period.

Binance is expected to officially announce the launch of the protocol later this month.