2024-4-25 18:57 |
BNB Chain, a decentralised smart contracts network, will soon enable native liquid staking on the BNB Smart Chain (BSC), according to details shared in a blog post today.
The move comes as BNB Chain looks to fully transition all functionality from the Beacon Chain via the BNB Chain Fusion. This milestone, which will be completed in phases, intends to migrate staking and governance among other activities to BSC as the Beacon Chain is sunset.
BNB Chain announced the wind down of the Beacon Chain in January. BEP333 or BNB Chain Fusion targets transitioning the network’s structure from being dual-chain to single chain, with BNB as the native token.
BNB Chain to integrate liquid staking on BSCAccording to the BNB Chain team, the process is aimed at streamline the blockchain network, with improvements to operational efficiency and security. BC Fusion is also set to bolster the future growth of the network across the DeFi ecosystem.
“Post-BC Fusion, our Beacon Chain validators can look forward to more valuable staking opportunities, particularly through maximum extractable value (MEV) and liquid staking derivatives (LSDFi),” the platform noted in the blog post.
With liquid staking, BNB holders can help secure the BNB Chain network while retaining the liquidity of their assets. Liquid staking integration is expected in April or early May.
Apart from benefits such as compounding of staking rewards, delegators will have a chance to contribute to network governance via direct voting on the BSC. This option was not available to the community prior to the unveiling of the BNB Chain Fusion.
Liquid staking will also offer stakers greater flexibility, with an opportunity to earn from other DeFi protocols. These include liquid staking and restaking protocols such as Lido and Renzo.
“By issuing liquid staking tokens that represent staked BNB, users can engage in DeFi activities without sacrificing asset utility,” the BNB Chain team wrote.
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