Author: Fahad Sheikh
Note: This is a community-written piece. The views expressed within are those of the author and not necessarily those of the pSTAKE team.
Being able to stake BNB is a very important service for the Binance community, as it offers great yield and doesn’t involve too much risk. Liquid staking, which many claim to be a superior version of regular staking, is now available to the BNB community and token holders. The BNB community now has an exciting opportunity to have the ability to liquid stake BNB and leverage liquid staking’s amazing benefits.
pSTAKE, a popular liquid staking platform, has added a new asset to widen its users options and now gives the BNB community the opportunity to liquid stake BNB. When you liquid stake BNB, there’s liquidity attached to your stake. Upon staking their assets, the user receives an underlying tokenized asset called stkBNB, which can be used to engage in the DeFi ecosystem on BNB Chain.
Offering a service that allows people to liquid stake BNB is new in the space, and pSTAKE is one of the first platforms offering this service. People all over the world stake BNB, and it’s one of the most popular cryptocurrencies being staked right now. Just a few years after being introduced into the market, BNB has grown to surpass an over $48 billion market capitalization and has a daily trading volume of more than $1 billion. There are now over 19 million staked BNB tokens run across more than 20 active validators. Most people who stake BNB are not liquid staking yet, thus enabling the ability to liquid stake BNB could be a game changer for pSTAKE.
Ability to Liquid Stake BNB is Still Rare
Liquid staking has achieved enormous growth since its inception, with many users now liquid staking several coins. The ability to liquid stake BNB is still novel in the space, and rarely would you see it being offered on any platform. Even though BNB is one of the top 5 cryptocurrencies and one of the most recognized coins in the space, it is seriously underserved in terms of liquid staking.
There are popular liquid staking coins such as ETH, ATOM, and XPRT. All these coins have a large share in the liquid staking market relative to their liquidity. However, a coin like BNB, even with all its liquidity, is not well known in the liquid staking space. Considering the many upsides of being able to liquid stake BNB in the crypto space, staking BNB, and getting representative stkBNB tokens should be a lot more popular than it really is. pSTAKE realizes these market inefficiencies and is thus promoting the ability to liquid stake BNB.
It is essential for pSTAKE to be an early supporter of allowing people to liquid stake BNB, because it will not only benefit the BNB community but also help pSTAKE grow as a staking platform. Evidence suggests in several crypto and blockchain products that have been executed in the digital ecosystem, early adopters reap the best benefit out of every new addition in the space.
Offering the Ability to Liquid Stake BNB Can Grow the Community
Being able to stake BNB is a very important activity for many within the Binance ecosystem. It helps provide passive yield rewards and hence has become very popular among the Binance community. Millions of BNB are staked by the Binance community, and this is a trend that continues to grow among them. In many ways, liquid staking can be considered an improved version of regular staking, but it would seem that the Binance community is not that familiar with liquid staking yet. Once the Binance community realizes all the added benefits involved with liquid staking, they will surely want to liquid stake BNB.
Despite the prolonged duration of the crypto winter in 2018, BNB’s community and holders actually managed to continue to grow, thus allowing Binance to have one of the largest communities in the space. Though the Binance community growth has been stagnating due to the recent bear market, BNB is still holding onto its place really well, and still manages to expand with the ongoing development of the Binance ecosystem. Currently, on-chain analysis on BscScan reveals over 2 million BNB holders with a cumulative amount of almost 23 million BNB being held. This is an astonishing milestone achievement for a 5-year old coin.
pSTAKE is already providing the Binance community and all BNB holders with the ability to liquid stake BNB. Liquid staking is a very valuable service, and once the Binance community wants to start their liquid staking journey, pSTAKE will be there for them. This will be great for pSTAKE as well, since Binance’s huge community using the staking platform can also help grow the pSTAKE community.
Offering the Ability to Liquid Stake BNB can Attract Liquidity
When it comes to pioneering great innovation in liquid staking, pStake cannot be exempted. pStake was one of the earliest platforms to provide users with liquid staking services and is continuing to grow in users, TVL, chain compatibility and number of assets. In its recent development, pStake has added to its number of services BNB liquid staking. Users who liquid stake BNB at pStake can mint a derivative token called stKBNB which can be used to participate in DeFi to earn more.
The stkBNB will work exactly the same way as a regular BNB token would. You can use your stkBNB in various DeFi platforms (for example DEXes) to earn additional yield rewards on top of your staking rewards. You can also trade these stkBNB tokens as you would trade a regular BNB coin. Essentially, people who liquid stake BNB on pStake will be able to maintain the liquidity of their staked assets.
Liquid staking not only provides liquidity to BNB stakers, it also brings in a lot of liquidity for pStake, which will help the staking platform grow. BNB has a major community, and a lot of liquidity backing it. The millions of users within the Binance ecosystem interact with several DApps, and perform an immense amount of transactions every single day. The Binance community are also avid stakers with 19 million BNB being staked already. Liquid staking is not yet as popular as regular staking among the Binance community, but it has already begun gaining traction.
The Ability to Liquid Stake BNB is Now a Reality
Liquid staking is still evolving in the crypto ecosystem as investors are finding ways to earn more from tokens. However, one main group of users that has been underserviced for long when it comes to liquid staking is the BNB community. They are many, they support one of the best coins in the space, have transactions taking significant proportions of crypto trading volume and are huge fans of staking. pStake is going to provide the Binance community with the opportunity to use the same set of tokens to continue earning staking rewards whilst being able to participate in DeFi as well.