BNB Chain to Initiate Native Liquid Staking on Smart Chain Amid Beacon Chain Shutdown
Summary:
BNB Chain is planning to incorporate native liquid staking into its BNB Smart Chain (BSC) as part of its transition plan, with the BNB Beacon Chain set to shut down by June 2024. This move is aimed at consolidating the network, improving efficiency, reducing security risks and meeting advanced technological needs. With liquid staking, users can participate in decentralized finance activities, maintaining their asset's utility with liquid staking tokens reflecting their staked crypto assets. The feature allows BNB holders to stake in a liquidity pool or directly to the validator, enhancing network security and providing greater staking flexibility. The launch for liquid staking is set for April or May.
BNB Chain intends to incorporate native liquid staking into its BNB Smart Chain (BSC), aligning with its plan to transfer the functions of the BNB Beacon Chain to BSC prior to its complete termination by June 2024, as stated in a communication to Cointelegraph. This change aims to facilitate ecosystem participants to safeguard the network while maintaining their asset liquidity. The precise rollout date for the liquid staking feature remains unspecified, with a proposed timeline of April or May. According to the principal development team of BNB Chain, the shift towards BSC aims at consolidating the network, thereby boosting efficiency, mitigating security threats, and meeting up-to-date technological demands. The team regards the transition as a growth strategy intended to enhance the allure of the BNB Chain to users. The liquid staking feature will allow users to participate in decentralized finance operations while maintaining the utility of the asset because liquid staking tokens will represent their staked digital assets. BNB Chain revealed that holders can contribute their BNB (BNB) to a liquidity pool or straight to the validator, noting that this enhances the security of the BNB Chain network while providing BNB holders with greater flexibility and multiple staking options for their BNB assets. When BNB holders stake their tokens in the liquidity pool, they can obtain liquidity provider tokens usable in numerous ecosystem activities. The team declared that liquid staking and the optimum extractable value (MEV) optimization for the BNB Chain will be implemented simultaneously. Validators equipped with MEV will have the chance to augment their staking yields through MEV revenue, which will eventually contribute to Liquidity Staking rewards.
Published At
4/25/2024 1:00:00 PM
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