BNB Chain, one of the largest smart contracts-enabled ecosystems in the crypto environment, has announced the inclusion of native liquid staking in its BSC blockchain. The new feature aims to allow validators to secure the network and maintain the liquidity of its assets while the ecosystem abandons the Beacon chain.
BNB Announces Native Liquid Staking Addition in BSC
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
BNB Chain Evolves Into a Native Liquid Staking Network
BNB Chain, a series of community-based Layer 1 and Layer 2 solutions, is adding key features to benefit its validators. According to a press release, the chain will enable a key functionality for its participants: the addition of native liquid staking in the Binance Smart Chain (BSC) blockchain.
Liquid staking allows delegators to reallocate their staked tokens into other protocols, giving them more opportunities to receive more value for their actions on BSC. This will secure more revenue through maximum extractable value (MEV) strategies and decentralized finance asset reutilization.
The feature includes three key advantages for ecosystem participants: The first is related to increasing the incentives for delegators (participants who assign their tokens to a validator) to participate in the network. BNB Chain states that compounding rewards and MEV value will increase the visibility of BNB for stakers. In addition, delegators can vote in the BNB Chain, which was impossible before.
The second advantage seeks to increase the efficiency and flexibility for participants in the BNB ecosystem to use their tokens and use this value to participate in other decentralized finance opportunities. Finally, this new feature also points in the way of expanding the validator base of the blockchain, leveraging the newly created incentives (like triple voting power for new participants and focused incentives for liquid staking partners) to fuel network participation.
The integration of native liquid staking is scheduled to take place between April and May., after the completion of the sunset of the BNB beacon chain. This process includes migrating validators and functionalities from the BNB beacon chain to BSC to “streamline the network, improve efficiency, reduce security risks, and align BNB Chain’s architecture with current technological demands and future growth plans.”
Earlier this month, BNB Chain launched “Rollup-as-a-Service” features to ease the creation of Layer 2 platforms in its protocol.
What do you think about adding native liquid staking to the BNB Chain? Tell us in the comments section below.
