BNB Liquid Staking by Ankr

This is a community post written by the Ankr team and published on BNB Chain Blog.

Key Takeaways:

• BNB Liquid Staking enables stakers to use the value of their BNB to earn staking rewards and other DeFi rewards simultaneously.
• BNB Liquid Staking on Ankr Earn mints new liquid staking tokens called aBNBb that can be used to earn more layers of rewards on both BNB Chain and Ethereum-based DEXs.
• BNB Liquid Staking makes staking as easy as a swap – your BNB in exchange for reward-earning aBNBb tokens.

For BNB Chain ecosystem supporters, staking BNB assets is one of the best ways to earn a higher APY on the funds they are holding anyway. However, it can be a tough choice between staking or using BNB to earn with other attractive DeFi opportunities like liquidity mining.

Liquid staking provides the best of both worlds – now, users can earn staking rewards and participate in DeFi simultaneously with the value of their BNB assets! All this is possible with the additional benefit of instant liquidity to exit their BNB staking position at any time.

Creating a Better BNB Staking Process

Ankr makes it easier for anyone to stake their BNB easily without going through any delegation process. Stakers no longer need any technical knowledge to get started besides downloading a crypto wallet and adding their BNB to it.

How Does Ankr’s BNB Liquid Staking Work?

With BNB Liquid Staking, Ankr will stake BNB tokens with top validator nodes we’ve selected while giving stakers new aBNBb tokens in return. This is an ERC-20 reward-earning token that will distribute staking rewards to your wallet daily through rebasing. In other words, your wallet’s aBNBb balance will increase daily to reflect your staking rewards.

If you want to unstake your BNB, you can choose the “unstake” option at any time on the Ankr Earn platform. After you unstake, you will need to wait 7 days before claiming your funds. During this time, your BNB will still be earning staking rewards (unlike most other options).  Also, aBNBb holders can effectively exit their staking position at any time without waiting by simply selling aBNBb on a supported DEX.

Benefits of BNB Liquid Staking & Unlocked DeFi Use-Cases

Using Ankr Earn to stake BNB gives users access to instant liquidity in the form of the aBNBb token. Avoiding locking value up with the BNB Chain network is a big advantage — it enables stakers to use the value of their staked BNB to potentially earn multiple layers of rewards on DeFi platforms and expand ROI potential. Let’s take a look at all the use cases stakers can now unlock:

Boosted Yields

As Liquid Staking solves the capital inefficiency problem of (Nominated) Proof-of-stake networks, it offers a way to earn additional rewards on staked BNB, enabling new yield farming strategies. The main components of BNB Liquid Staking will be:

• Liquidity mining opportunities are enabled by providing liquidity to pools in decentralized exchanges. Additionally, liquidity pools like aBNBb/BNB on Ellipsis Finance offer a very low risk of impermanent loss because their prices should remain very close at all times.
• Farming rewards for liquidity providers - BNB liquid staking presents several yield farming strategies for users to contribute to liquidity pools and gain a share of the trading fees and Liquidity Provider or 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 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.
• Borrowing & lending - The aBNBb tokens will also allow users to borrow against their aBNBb assets in exchange for assets like BNB that can be restaked or used for additional earning strategies. Or, lend your aBNBb assets in return for interest paid by borrowers.
• More trading opportunities - Make arbitrage trades by potentially buying aBNBb at a discount on a Decentralized Exchange and redeeming it (unstaking it) on Ankr Earn to extract its fair value back within 7 days (the unbonding period).

Supporting the BNB Chain Ecosystem

Making Staking Easy as a Swap

Ankr’s liquid staking creates an even easier staking experience so more users can get involved right away while skipping more in-depth or technical delegation processes. Users can either stake BNB via Ankr Earn or simply purchase aBNBb tokens on a DEX to earn staking rewards.

Enhancing Decentralization

Ankr’s BNB Liquid Staking will not be using only Ankr validator nodes to stake the BNB from users. Ankr Earn will select several suitable and reliable BNB Chain validators, making BNB Liquid Staking more decentralized one validator at a time.

Improving Security

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 ensure the network remains as secure as possible.

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