BNB Chain, the core Blockchain of the Binance ecosystem, made an important announcement covering 3 altcoin projects.
Binance introduced staking solutions for these 3 altcoins
BNB Chain introduced liquid staking with three leading Web3 protocols, Ankr, Stader and pStake. In liquid staking, users who stake or lock their token for a specific use are awarded new tokens of an equivalent value. New tokens represent ownership of the underlying. They are also fully transferable and can be unlocked to redeem staked assets. By the way, they can be used to generate returns. Thus, they free up capital and make such products attractive to users.
Liquid staking is becoming increasingly popular as it saves investors from lockdown times
Liquid staking is becoming more popular as the Ethereum network moves towards becoming a PoS system. Popular crypto exchange Coinbase said last week that it plans to launch its own liquid staking token, called Coinbase wrapped staked ETH (cbETH). In July, he joined Lido Finance, which said it will soon offer staked ETH on tier 2 or complementary networks.
With the introduction of BNB Chain, users will be able to earn interest by allocating BNB token to liquid staking protocols and receiving exchangeable aBNBc, BNBX and stkBNB tokens in return. Gwendolyn Regina, investment director of BNB Chain, said about the announcement:
Only 24 percent of the total market capitalization of staking platforms is locked into staking. We believe that users are not yet fully aware of the benefits of staking. It reduces the risk of concentration by using three competitive protocols to avoid a single point of failure.
Additionally, Helio Money offers what it calls a “destablecoin,” which it says is a new asset class. The prefix “de-” means decentralized; It does not imply price volatility. While crypto-backed stablecoins are stable to centralized cryptocurrencies like USDC, unstable coins like Helios HAY will use decentralized assets like BNB as collateral. Destablecoins also differ from stablecoins in providing broad stability without an absolute fixation to fiat currencies.
Liquid staking moves of other projects
Earlier this month, liquid staking protocol pStake and Stader, a staking platform as a service, went live on BNB Chain. Additionally, it has completed Ankr, which provides a software development kit to help protocols offer token staking. As of Monday, the three together have locked in a combined valuation of 101,100 BNB, or $30 million. Gwendolyn Regina, investment director of BNB Chain, said in a statement on the subject:
Only 24 percent of the total market capitalization of staking platforms is locked into staking. We believe that users are not yet fully aware of the benefits of staking. It reduces the risk of concentration by using three competitive protocols to avoid a single point of failure.
