BNB Liquid Staking
What and why is Binance Liquid Staking?
Ankr Staking offers Binance token holders the opportunity to stake BNB and in return claim Binance Liquid Staking tokens — ankrBNB.
ankrBNB is a reward-bearing token, meaning that the fair value of 1 ankrBNB token vs. BNB increases over time as staking rewards accumulate inside the token.
ankrBNB also offers instant liquidity for your staked BNB, enabling you to connect ankrBNB with DeFi platforms and earn several more layers of rewards.
There are no more new stakes getting aBNBb token. However, old stakes with aBNBb keep generating you rewards. You can also switch aBNBb for ankrBNB now (opens in a new tab) (supply is limited).
BNB Liquid Staking smart contracts have undergone external audits by Beosin Blockchain Security and PeckShield:
- Apr 2022 detailed audit report by Beosin (opens in a new tab)
- Jul 2022 detailed audit report by PeckShield (opens in a new tab)
- Feb 2023 detailed audit report by Veridise (opens in a new tab)
For information on BNB Liquid Staking smart contracts, visit BNB development details.
Binance Liquid Staking supports several options, including hot and cold wallets. View a complete list at Compatible wallets.
As Liquid Staking solves the capital inefficiency problem of (Nominated) Proof-of-stake networks, it offers a way to earn additional rewards on your staked BNB, enabling new yield farming strategies. The main components of BNB Liquid Staking will be:
- Liquidity mining opportunities are enabled by providing liquidity for pools in decentralized exchanges.
- Farming rewards for liquidity providers: Liquid Staking presents several yield farming strategies for users to contribute to liquidity pools and gain a share of the trading fees and governance tokens. These new LP tokens can be used to generate yet another layer of earnings.
- Staking rewards on farmed tokens: After using yield farming strategies, users can also reinvest their farmed LP tokens into more staking opportunities. This is a highly repeatable process as layers of rewards from farming and staking will quickly stack up.
- Yield aggregators /vaults can automate yield farming rewards and enable compounding returns with next to no effort from users. This is a great method for maximizing your passive income strategy.
- More trading opportunities are enabled thanks to the elastic supply nature of ankrBNB, meaning that you could potentially buy ankrBNB at a discount on a Decentralized Exchange and redeem it (unstake it) on Ankr Staking to extract its fair value back in up to 7–15 days (the BNB Liquid Staking unbonding period).
If you would like to unstake your BNB, you can choose the “unstake” option at any time on the Ankr Staking platform. You can choose two options: regular unstake or flash unstake. With regular unstake, you will need to wait up to 7–15 days before the funds are released to your walle, while with flash unstake you get them instantly. This creates a more robust price stability mechanism for BNB Liquid Staking, where any price deviation of ankrBNB vs. its fair value will create trading opportunities that can be exploited by redeeming ankrBNB while unstaking BNB or minting ankrBNB while staking BNB. That means if you could potentially buy ankrBNB at a discount on a DEX and unstake it on Ankr Staking at its fair value to make a profit! Therefore, ankrBNB price stability will be less dependent on the size of liquidity pools and associated rewards. Borrowing and lending the ankrBNB tokens will also allow users to borrow against their ankrBNB assets in exchange for assets like BNB that can be restaked or used for additional earning strategies. Or, lend your ankrBNB assets in return for interest paid by borrowers.
No technical knowledge required
Receive an easier staking experience with no technical knowledge necessary. Liquid Staking makes staking as easy as a swap: exchange your BNB for the reward bearing ankrBNB token. Enhanced decentralization Our BNB Liquid Staking will not be using only Ankr validator nodes to stake the BNB from users. Ankr Staking will select several suitable and reliable BNB Chain validators, making BNB Liquid Staking as decentralized as possible. This means that Ankr will not contribute to giving any party more influence over the BNB Chain network as the BNB will be spread over a wide variety of nodes. Ultimately, the end goal is having Ankr governance decide on the target allocation to different validator nodes.
Contribute to the security of the BNB Chain network
Staking with BNB Liquid Staking allows you to play an important role in boosting the network’s security as a whole. Ankr’s BNB staking system distributes staked tokens intelligently across the BNB Chain ecosystem to help the network achieve optimal decentralization. Diversity and decentralization of active validators both ensure the network remains as secure as possible.
If you want to get additional yield on your BNB stake, read how to receive more rewards (opens in a new tab).
Instant Liquidity Using Ankr Staking is the best way to stake BNB as you can access instant liquidity in the form of the ankrBNB token. Avoiding locking your tokens up with the BNB Chain network is a big advantage — it allows you to use the value of your staked tokens to earn multiple layers of rewards on DeFi platforms and multiply your ROI potential. Yield farming, arbitrage trading, lending, and more will all be possible using the value of your staked assets.
Read the Medium article (opens in a new tab) about staking and liquidity mining to learn more!