pSTAKE Thesis: BNB Liquid Staking can be as big as ETH

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Dive into the potential $85B+ BNB Liquid Staking Ecosystem and our 4 thesis points for substantial market share capture by pSTAKE Finance’s stkBNB.

The Binance Smart Chain (BSC) is one of the leading L1s in the crypto industry. Low fees, integrated User Experience, and easier onboarding of users into DeFi from CEXs like Binance, OKX, etc. have all led to BSC being a market leader for dApps and active on-chain users.

BSC’s robust infrastructure has deployed all kinds of dApps–DeFi, NFTs, SocialFi, etc. There’s something for everyone on the Binance Smart Chain.

At its heart, BSC is powered by the Cosmos SDK. This allows the chain to scale and adapt securely. Sovereign. Customizable. Flexible. 

Staking sits at the epicenter of Cosmos SDK chains, pivotal for network security. High Staking = High Economic Security.

Stakers lock BNB, the native token of BSC, with any of the 40 active validators (with a 7-day lockup period) to secure the chain and earn staking rewards. With a $80B+ market cap, the room for growth of staking (and liquid staking) remains one of the biggest untapped markets in crypto. 

BNB is as much money as ETH

One of the most substantial narratives for Ethereum has been ETH’s moneyness. Arguably, all the supporting cases, and more, for ETH as money exists for BNB, too.

BNB can derive its source of moneyness from four significant sources on BSC: DeFi, Staking, Burns, and Adoption. Applying the same argument for ETH moneyness to BNB:

  • BNB is the only legal tender accepted in the BSC Economy for gas and staking 
  • BNB is the most trustless and liquid value store in the BSC Economy 
  • BNB is disinflationary with its quarterly burn and per-block gas fee burn mechanism 
  • BNB’s DeFi landscape has evolved into an ecosystem ready to thrive with 751 protocols and $9.3B TVL.
  • BNB’s widescale adoption and holder base can lead to enough people adopting BNB as money

pSTAKE Finance’s BNB Liquid Staking Thesis

pSTAKE Finance launched BNB liquid staking in partnership with Binance Labs in August 2022.

Today, as the overall BSC ecosystem has matured with more user educational support and LSTfi utility, BNB liquid staking looks primed to bring in the next phase of growth–TVL, Traction, and Adoption.

How are pSTAKE Finance and stkBNB well-positioned to capture this expected boom? Let’s dive in.

BNB Liquid Staking will grow 5x in the next 1 year

The total BNB liquid staking market today stands at ~$250M. BNB’s total market market represents ~$86B. Simply put, ONLY 0.29% of the total BNB supply is liquid staked.

How does that compare to its Ethereum counterpart? ~$49B ETH is currently liquid staked, with ETH’s total market cap at ~$426B. Essentially, ~11.5% of all ETH is liquid staked.

The case made above in this blog for BNB as money compared with similar staking yield as ETH makes BNB liquid staking a fueled rocket ready for takeoff.

Extrapolating the current Ethereum liquid staking adoption to BSC, an 11.5% liquid staking market would represent a ~$10B market, a 40X increase at current prices.

As one of the first BNB liquid staking solutions with 10+ DeFi integrations and the lowest BNB liquid staking fees, pSTAKE Finance’s stkBNB is best positioned to capture this expected boom.

Leveraged BNB Liquid Staking will see parabolic adoption

One of the highest DeFi, nay, LSTfi yield sources on Ethereum comes from looping ETH liquid staking. Liquid Stake ETH -> Deposit stETH as collateral -> Borrow ETH -> Repeat.

A multi-billion dollar money market opportunity has emerged from this simple looping strategy. As the ETH staking yield is very similar to that of the BNB staking yield (2-3%), a similar low-cost yield opportunity is presented for BNB LSTfi.

The adoption of BNB liquid staking has met the emergence of leading money markets on BSC. Battle-tested and state-of-the-art protocols like Venus Protocol and Radiant Finance have found a home on BSC. The launch of isolated lending markets using these protocols presents a more secure and less risky borrowing environment for BNB LSTs.

Leading vault products like Beefy Finance can enable 1-click leveraged liquid staking solutions built on top of liquid staking providers and money markets for the best-in-class BNB liquid staking user experience.

pSTAKE Finance’s stkBNB will be integral to leading LSTfi protocols like Venus Protocol, Beefy Finance, and Radiant Finance with already existing partnerships.

Institutions will adopt BNB Liquid Staking

Greyscale recently announced a Crypto Staking Fund involving leading staking tokens. As more and more institutions adopt crypto, the inclusion of BNB seems inevitable as the fourth largest crypto token by market cap.

Luckily, the infrastructure for adoption with self-custody, institutional investors, and secure and sound BNB liquid staking is already present on BSC.

Institutional adoption will depend on available liquidity and a secure way to hold LSTs. pSTAKE Finance recently announced its intent to make stkBNB the most liquid BNB LST.

pSTAKE Finance’s stkBNB is the only BNB LST integrated with Ceffu (Binance Custody) and has undergone three security audits by leading firms like Peckshield, Halborn, and Certora.

Launchpads will integrate BNB LSTs

Launchpads involve the launch of a token to users that perform specific actions, usually locking up capital. The Binance Ecosystem is one of the best places for Launchpads to thrive due to its vast user base and readily available capital.

From a project’s perspective, do you want early adopters and capita? Binance is the perfect option.

Integrating BNB LSTs in such applications can bring about multiple benefits like capital efficient and extended launchpad event periods, attracting early users, and more alignment with BNB.

Some leading Launchpads that could integrate BNB LSTs like pSTAKE Finance’s stkBNB include PinkSale, UNCX Network, DxSale, ChainGPT, Team Finance, and Binance Launchpad.

Leading BNB Liquid Staking

pSTAKE has a clear goal. Becoming the leading liquid staking provider on Binance Smart Chain.

pSTAKE has very extensive differentiators. Focus on decentralization and security. Superior user experience. Maximizing LSTfi yields with widespread DeFi utility. New partnerships. Ecosystem alignments.

pSTAKE’s initial BSC Thesis has played out very well with the early bet it took in 2022 by launching liquid staking in partnership with Binance Labs. In 2024, pSTAKE envisions the BNB liquid staking market to grow parabolically and is accelerating at light speed to become the biggest BNB liquid staking protocol.

More Yield. More TVL. More Traction.

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