Stader Labs, an altcoin company that produces staking products, has launched a new token, BNBx, on the BNB Chain. Stader and BNBChain announced that the token allows users to maximize their returns on BNB while maintaining liquidity.
How does BNBx work with BNB?
In a blog post, Stader explained that BNBx will work seamlessly for those who currently hold BNB and choose to stake with Stader. Stader specifically reveals that BNBx does not have a fixed APY. Instead, it has a dynamic APY that depends on the rewards offered by the validators. When users stake BNB with their platform, they will automatically mint more BNB. The platform will then share the tokens with various validators.
Maximizing yield on your #BNB while maintaining liquidity?… Tell us more https://t.co/H7OSX3mZQt
— BNB Chain (@BNBCHAIN) July 22, 2022
In a different post, Stader explains that they will prioritize validators who charge less than 10% from their delegates and have a reward rate higher than 5%. When the validators process the transaction, it will generate rewards and increase the supply of BNBx.
Stader says that BNBx is a reward-oriented liquidity token. As more rewards accrue, the value of the token will increase compared to BNB. At the launch of the product, the exchange rates between the two tokens will be 1. However, as more and more transactions and stakes occur, the rate will be adjusted according to a formula.
Fee structure and dynamics of the token
Stader also detailed the fee structure of the tokens. They explained that users who stake will have to pay a transaction fee to Binance, which is not controlled by Stader. There is also a 10% reward fee. Users will only pay after winning the prize. The altcoin project also states that users will not pay any commission for staked BNB.
What is Stader (SD) and why is it important to the altcoin market?
Stader creates the basic staking middleware infrastructure for individual investors. It also produces modular smart contracts so that third parties can leverage the components and create custom solutions. In the short term Stader, Terra, Solana, Ethereum, Avalanche, Fantom etc. It builds local contracts on blockchains. The altcoin project will focus on developing various staking applications, especially in the long term.
We can't keep talking about #BNBx without talking rewards💰
Here is a small dive into that topic👇https://t.co/kST3NKQqgu
— Stader.BNB (@stader_bnb) July 20, 2022
SD token is the local government and value accrual token for Stader. Stader has established basic mechanics that essentially connect SD tokens to the Stader platform. SD token, which is 3300th by market cap, is currently trading at $0.458. It has lost 95.13% from the $9.39 peak it reached last April.
cryptocoin.com As we have reported, Binance has previously made important statements for Dogecoin and Litecoin. The staking program that has started for DOGE and LTC will not be able to be staked to earn additional returns.
