BNB Chain to Introduce Native Liquid Staking on Binance Smart Chain

BNB Chain to Introduce Native Liquid Staking on Binance Smart Chain

BNB Chain Introduces Native Liquid Staking on BNB Smart Chain

BNB Chain has announced plans to implement native liquid staking on its BNB Smart Chain (BSC), coinciding with the winding down of the BNB Beacon Chain. This shift is part of a larger effort to streamline the BNB ecosystem and enhance its functionality for users. Here’s what you need to know.

BNB Beacon Chain to Be Shut Down by June 2024

In an official statement, BNB Chain revealed that the BNB Beacon Chain will be completely closed by June 2024. Before the shutdown, the company plans to migrate all essential functions from the Beacon Chain to the BNB Smart Chain, ensuring a smooth transition for users and maintaining network integrity.

Benefits of Liquid Staking on BSC

By introducing liquid staking on BSC, BNB Chain aims to allow participants to secure the network while retaining the liquidity of their assets. This approach provides several advantages:

  • Stakers can receive liquid staking tokens representing their staked assets.
  • These tokens can be used in various decentralized finance (DeFi) activities, adding more utility.
  • Staking rewards not only secure the network but also offer BNB holders increased flexibility.

Rollout Expected by April or May 2024

While an exact date hasn’t been provided, BNB Chain has indicated that the rollout for liquid staking on BSC is likely to occur in April or May 2024. This aligns with the ongoing transition and the company’s growth plans to make BNB Chain more appealing to users.

Streamlining the Network and Reducing Risks

The BNB Chain core development team explained that this transition is designed to streamline the network, improve efficiency, and reduce security risks. The team stated:

“The implementation aligns with the sunset of the BNB Chain Fusion, streamlining the network, improving efficiency, reducing security risks, and matching current technological demands.”

As the Beacon Chain functions are migrated to the BSC, users can expect a more efficient and secure experience.

Growth and Enhanced Security with Liquid Staking

The move towards liquid staking is not only about flexibility but also contributes to the security of the BNB Chain network. When BNB holders stake their tokens in a liquidity pool or directly with a validator, they can benefit from increased staking rewards and enhanced security.

Moreover, BNB holders who stake in liquidity pools can receive liquidity provider tokens. These tokens can be used within the ecosystem for various activities, adding to their utility.

Maximizing Staking Returns with MEV Optimization

BNB Chain also plans to roll out Maximum Extractable Value (MEV) optimization alongside liquid staking. This initiative allows validators with MEV enabled to boost their staking returns through MEV revenue, which will be factored into liquidity staking rewards. This adds another layer of benefits for users participating in liquid staking.

Overall, BNB Chain’s shift towards native liquid staking on BSC, along with MEV optimization, is a strategic move to strengthen the ecosystem and offer more value to BNB holders. As the BNB Beacon Chain is phased out, the BNB Smart Chain will continue to evolve to meet current technological demands and user expectations.

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