BNSOL: The New Liquid Staking Token (LST) That Will Change the Way You Stake SOL

BNSOL is a liquid staking token (LST) that can be used for trading, lending or providing liquidity all while still earning rewards for your SOL staking.

Binance, the world's largest crypto exchange, posted a cryptic message on X (formerly Twitter) on August 29. The post contained only five characters: “BNSOL.” This sparked a flurry of speculation within the community.

Some speculated that Binance might be introducing a new product or announcing a partnership. Others guessed that it could be related to a new token launch or an airdrop. Binance’s cryptic message was designed to pique the community's interest and get them wondering about the exchange's next move.

Our Research about BNSOL

We did some digging into BNSOL and found something interesting that we shared with our readers. We weren't entirely sure, but it seemed like we had found the answer to the question “What is BNSOL.” And today, Binance tweeted, confirming our research.

Binance posted a tweet today revealing what they were hinting at earlier. “In a very short time, liquid staking will get a new fren—BNSOL,” Binance wrote.

What is BNSOL?

BNSOL is a liquid staking token (LST) that can be used for trading, lending, or providing liquidity—all while still earning rewards for your SOL staking.

If you use the staking feature on Binance, you know that staking your tokens either locks them for a specific period or in flexible staking. In both cases, you cannot use your assets for other purposes while they are locked. And if you have staked in some decentralized protocol, you get liquidity tokens, which is just a proof of your staking.

Binance has introduced a unique staking method called Liquid Staking, which gives users more freedom to use their SOL tokens even when staked, allowing them to generate revenue.

How Does BNSOL Work?

The process is similar to using the earn feature of Binance. When a user stakes his SOL in Binance, he will receive BNSOL token in his spot balance. The BNSOL:SOL conversion ratio on Binance SOL staking page will determine how many BNSOL token he will receive.

One BNSOL is equal to one stacked SOL plus the accumulated staking reward till the Solana epoch ends. With time, the value of one BNSOL will progressively exceed that of one SOL. Binance updates the conversion rate with every new Solana epoch, which usually takes two days. Once you stake SOL, you receive BNSOL in your spot wallet, which you can transfer to the Binance Web3 wallet to use with other Binance products or external dApps.

You can redeem the liquid staking token for SOL based on the current BNSOL conversion ratio, similar to the staking process. However, it is noteworthy that it might be possible that the redemption takes up to 4 days due to processing restrictions.

Looking Ahead!

Binance is changing the way users stake their SOL to earn interest with BNSOL. Now, with this liquid staking feature, users will be able to generate revenue from their SOL staking and use the tokens for other purposes, both at the same time. This is even more advanced than performing a stake on decentralized protocols.

How fun is it to use your staked tokens for lending or trading?