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BNB Chain Rolls Out the Native Liquid Staking on BSC

New staking option: BNB developers move to enhance user experience

As part of a strategic overhaul, BNB Chain is set to enable native liquid staking on the BNB Smart Chain (BSC), moving away from the soon-to-be decommissioned BNB Beacon Chain. This move, expected to be completed by June 2024, is designed to streamline the network and enhance operational efficiency. 

The BNB Chain core development team stated:

"The implementation aligns with the sunset of the BNB Chain Fusion, streamlining the network, improving efficiency, reducing security risks, and matching current technological demands," 

This transition will allow ecosystem participants to secure the network while maintaining the liquidity of their assets, making BSC more attractive to users and potentially increasing participation in decentralized finance (DeFi) activities. The team emphasized that this integration would not only retain but enhance the asset’s utility by providing users with liquid staking tokens that represent their staked crypto assets.

Liquid staking rollout and its implications for BNB Chain

The introduction of liquid staking is slated for April or May, without a specific date confirmed yet. This feature will enable BNB holders to stake their tokens with increased flexibility, either by contributing directly to validators or by delegating to a liquidity pool. 

The development team explained:

"Liquidity staking not only rewards BNB stakers but also enhances security for the BNB Chain network. It offers BNB holders increased flexibility in staking their assets and more options for staking BNB," 

Participants in the liquidity pool will receive liquidity provider tokens, which can be utilized across various activities within the ecosystem, further enriching the DeFi landscape on BSC. Additionally, the rollout of liquid staking will be accompanied by maximum extractable value (MEV) optimization, offering validators the opportunity to boost their staking returns through MEV revenue, which will also enhance the overall liquidity staking rewards. This dual implementation underscores BNB Chain's commitment to providing a robust, flexible, and efficient platform for its users.