- BNB Chain will enable native liquid staking on its BNB Smart Chain (BSC)
- The BNB Beacon Chain will be shut down by June 2024, and its features will be transferred to BSC
- Liquid staking will allow users to engage in DeFi activities while earning interest on their staked assets
BNB Chain has announced plans to enable native liquid staking on its BNB Smart Chain (BSC) as part of its shift to migrate the BNB Beacon Chain’s functions to BSC before the Beacon Chain is wound down in June 2024. This move aims to streamline the BNB Chain network, improve efficiency, reduce security risks, and match current technological demands.
Background on BNB Chain’s Transition
BNB Chain will transfer the BNB Beacon Chain’s features to BSC before completely shutting down the Beacon Chain in June 2024. Enabling liquid staking on BSC will allow ecosystem participants to secure the network while keeping the liquidity of their assets. The rollout of liquid staking is expected in April or May 2022.
How Liquid Staking Will Work
With liquid staking, users can engage in DeFi activities without sacrificing the utility of their assets because they will have liquid staking tokens representing their staked crypto assets. Holders can delegate their BNB to a liquidity pool or directly to a validator.
When BNB holders stake their tokens in a liquidity pool, they receive liquidity provider tokens which they can use across the BNB Chain ecosystem. Along with liquid staking, BNB Chain will also roll out Maximum Extractable Value (MEV) optimization. Validators with MEV enabled can boost staking returns through MEV revenue.
Benefits of Liquid Staking
Liquid staking not only rewards BNB stakers but also enhances security for the BNB Chain network. It offers BNB holders increased flexibility in staking their assets and more options for earning rewards on their BNB. Overall, enabling native liquid staking on BSC aims to streamline and optimize the BNB Chain network.
