In brief
- Binance has unveiled a BNB staking feature.
- Users can leverage BNB to earn interest against a range of Binance's financial products.
- Current annual percentage yields are estimated at around 5%-10%.
Correction: The headline initially said "daily interest" when in fact it is 5-10% annual interest that's paid daily. We apologize for the confusion.
Crypto exchange Binance today announced the launch of BNB Vault, an investment product that claims to offer 5-10% annual interest via the exchanges native token, BNB.
The BNB Vault is a yield aggregator that allows users to put their BNB to work by leveraging Binance’s range of financial offerings to earn interest.
"BNB Vault is a capital-guaranteed investment product with flexible access. It integrates various Binance products to maximize the income potential of your BNB from both centralized and decentralized finance in just one click, allowing BNB holders to enjoy all the benefits of the Binance ecosystem with one click," a Binance press release stated.
Binance Destroys $68 Million of BNB in Most Expensive Burn to Date
Cryptocurrency exchange Binance today burned $68 million worth of its cryptocurrency, Binance Coin (BNB). The Malta-based exchange said its 13th token burn, which destroyed 2,253,888 tokens or 1.13% of the token's supply, is its highest-ever burn in terms of dollar value and the fourth-highest in terms of the amount of BNB burned. 🔥 🔥 🔥 🔥 🔥 🔥 🔥 2,253,021 #BNB (68,278,214 USD) burned at #Binance Tx: https://t.co/8EuIXLwJWc — Whale Alert (@whale_alert) October 17, 2020 Burning involves d...
Interest is calculated and distributed daily to user spot accounts with current annual percentage yields (APY) estimated at around 5%-10%.
The yield is derived from various Binance Earn products, including new tokens rewarded via Launchpool, Binance's staking incentivization scheme; Binance's Flexible Savings, a product allowing users to gain interest on their deposits; and BNBs decentralized finance (DeFi) Staking protocol.
“Keep it simple. Let us handle all the technical details, and potential risks of rug pulls," wrote exchange boss Changpeng "CZ" Zhao.
Keep it simple. Let us handle all the technical details and potential risks of rug pulls. https://t.co/Nh9IuC8eRS
— CZ Binance (@cz_binance) November 3, 2020
The term “rug pull” has become synonymous with less-than-savory DeFi-based yield aggregators. Jumping on the bandwagon on legitimate DeFi protocols, bad actors have come out of the woodwork, offering staggering yields only to “pull the rug,” or exit scam—leaving investors holding near-worthless tokens.
DeFi Yield Farming Could Threaten Security of Ethereum 2.0
A ConsenSys report on decentralized finance published yesterday said that the launch of Ethereum 2.0 could be disrupted by DeFi protocols, which could be far more profitable. In its Q3 DeFi Report, ConsenSys, which funds an editorially independent Decrypt, described the concern that “DeFi could be the number one threat to getting a significant amount of staking participation in Eth2.” DeFi refers to a wide variety of Ethereum-based, non-custodial financial products that have about $11 billion w...
The new offering comes as part of Binance Earn, a host of financial products offered by the exchange that range from savings accounts to decentralized finance (DeFi) staking.
Even throughout the process, staked BNB still remains eligible for benefits such as airdrops and the Launchpad lottery.
Binance's new feature comes in the wake of explosive interest in yield aggregating, or yield farming—an incentivization scheme that drives liquidity to DeFi protocols.
Yield farming is cited as one of the principal reasons for the DeFi sector's enormous $10 billion growth this year. And with metrics like that, it's no wonder Binance is attempting to take a piece of the pie.
