Binance Launches High Yield DeFi Staking

Binance launched a new high yield DeFi staking activity on the 15th of April 2021. Presently, users can now stake USDC, HARD, XVS and earn almost 37.36% APY (Annual Percentage Yield).

By
Utulu Hope
on
April 22, 2021
Category:
Blockchain News


Introduction to DeFi Staking 

The term DeFi stands for decentralized finance. Unlike CeFi (Centralized Finance), DeFi offers its users decentralized financial services via smart contracts on a blockchain. Presently, DeFi projects (DApps) have not been adopted entirely due to two main reasons. A lack of public awareness and a complicated non-intuitive user interface. Binance introduced DeFi staking to help proxy users to participate in related decentralized projects. With DeFi staking, users have access to DeFi with ease. Without the need to acquire resources, manage private keys, make trades, or perform other complicated tasks required to take part in DeFi staking, users can earn the highest possible returns upon clicking the "stake now" button. While this makes sense, how do you participate in Binance DeFi staking? 

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How To Participate in DeFi Staking on Binance 

  • Login to your Binance account. 
  • In the left top menu, select Finance and click Binance Earn. 
  • Then under the "Fixed Terms" category, choose DeFi Staking. 
  • You will be directed to a page where you will see all the DeFi Staking projects currently available on Binance Earn. 
  • Next, select an asset you want to stake by clicking Stake Now. 
  • On the next page, you will find details of the offer. You can play with the calculation by choosing either flexible or locked staking and adjust the duration. The page will show you the APY for each calculation. This will make you know the best offer to pick. 


Features of Binance High Yield DeFi Staking 


Flexible Staking

 Flexible staking refers to a flexible order type that allows you to redeem your staked assets at any time. When any user chooses to redeem their staked assets, their assets will be returned to their accounts the following day. 

Locked Staking

Locked staking refers to staking that is fixed for a specific time frame. Compared to flexible staking, locked staking provides higher interests. However, users need to lock their assets for the displayed duration. Assets can be redeemed before the end of the locked duration, but users may not receive any interest generated over their staking period. Users' staked assets will be unlocked and returned to the spot wallet the following day. 

During the staking period, users' assets will be locked on-chain. It is not possible to withdraw or perform any transactions with the allocated assets. 

Available Amounts

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This shows the available balance in your spot wallet that can be used to stake on Binance Earn. There is a minimum required limit for staking, and if a user's balance is lower than that, it will be impossible to stake. Also, it is worthy to note that if the total remaining quota of the product is lower than the available balance on your spot wallet, you will only be able to purchase the remaining amount of the displayed quote. 

Start Earning 

Enter the amount you want to stake, and click on "Confirm Purchase" to complete the process. Details will be found under Savings. Then navigate to DeFi staking. Once the product is subscribed successfully, Interest is calculated starting at 00:00 UTC the following day. The rewards are distributed to the spot wallet every day after 00:00 UTC. When the process is complete, the staked assets will be redeemed automatically, and the funds will be returned to a user's spot wallet. To redeem assets before the end of the staking period, click on the "Redeem earlier" button. 

Note: Unlocking staked assets requires a specific time based on the specifications of the chain you're staking on. Also, if you redeem your stake earlier on locked staking, you will lose your interest. If you decide to redeem the "Locked staking" products in advance, the interest generated will be deducted when assets are returned. 


Conclusion 

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Binance strives to offer its users the best DeFi staking projects. Binance only acts as a platform to showcase projects and provides users with related services. Binance will also offer the best high-quality coins. However, they will not be responsible for trading losses. 

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Utulu Hope

UC Hope is a passionate fan of crypto who could weave the latest event into sparks of inspiration and information. He leaves no stone unturned to get to the core of a story. Aside from writing, he spends his hours poring over algorithms and protocols, preparing for a future career as a computer programmer.