Native Liquid Staking Arrives on BNB Smart Chain

BNB Chain, known for being the world’s largest smart contract blockchain ecosystem, has announced a significant advancement with the introduction of native liquid staking (LSDFi) on BNB Smart Chain (BSC). This development is a direct result of the BNB Beacon Chain sunset, marking a strategic move towards consolidating blockchain functionalities and enhancing network efficiency.

Transition and Technological Streamlining

The sunset of the BNB Beacon Chain, slated for completion in late June 2024, will see all its functionalities migrated to BSC. This strategic shift is designed to streamline the network, improve security, and align with current and future technological demands. By integrating native staking directly on BSC, BNB Chain aims to offer users high annual percentage yield (APY) staking options along with benefits derived from Miner Extractable Value (MEV).

Benefits of Liquid Staking on BSC

The implementation of liquid staking allows users to maintain liquidity while securing the network. By issuing tokens that represent staked BNB, participants can remain active in DeFi activities without losing the utility of their assets. Scheduled between April and early May 2024, this feature not only enhances asset liquidity but also introduces several key benefits:

• Enhanced Delegator Benefits: With LSDFi and MEV, delegators can enjoy daily compounding staking rewards and additional income streams, making BNB Chain an attractive staking platform. The ability for direct voting on BSC further empowers users in governance decisions.
• Increased Flexibility and Governance: Liquid staking tokens provide flexibility in participating in other DeFi protocols without compromising staking yields. This adaptability is crucial for enhancing BNB governance and expanding application scenarios.
• Expanded Validator Base: The transition encourages a broader validator involvement, especially from entities engaged with LSD and LRT protocols like Lido and Renzo. Enhanced voting power and incentives for new validators aim to diversify and strengthen the network’s expertise and innovation.

Advancements in MEV Solutions

BNB Chain is also focusing on enhancing its MEV offerings within the ecosystem. With existing solutions like Puissain, TxBoost, and BloxRoutes, the proposed BEP 322 aims to implement the Proposer Builder Separation (PBS) mechanism on BSC. This initiative is expected to foster competitiveness and standardize MEV solutions by introducing a standard builder API, allowing validators to work with multiple builders effectively.

About BNB Chain

BNB Chain is a pivotal community-driven blockchain ecosystem aimed at eliminating barriers to Web3 adoption. It comprises several components:

• BNB Smart Chain (BSC): Acts as a secure DeFi hub known for the lowest gas fees among EVM-compatible L1 blockchains.
• opBNB: Provides scalability solutions as an L2 with rapid processing speeds and minimal gas fees.
• BNB Greenfield: Addresses decentralized storage needs, enabling users to create personal data marketplaces.

With security measures like AvengerDAO and real-time risk scanning through Red Alarm, BNB Chain continues to provide a safe environment for its users while offering substantial support through its Builder Support Program.