BNB Chain has disclosed plans to launch native liquid staking on its BNB Smart Chain. The network made the disclosure on Thursday via its official page on X (formerly Twitter). According to the announcement, the move emanated as part of the network’s effort to transfer the function of the BNB Beacon Chain to the BNB Smart Chain.
Consequently, as part of the plan, the network added that the BNB Beacon Chain will stop operating by June 2024. In preparation for the shutdown, the firm intends to migrate its features to BNB Smart Chain. More so, the BNB Chain core development team revealed that the migration is an attempt to streamline the network and enhance its efficiency.
In the announcement, the firm explained how the development is part of its expansion plan and strategy to make the BNB Chain more attractive to users. Also, the fusion is designed to align the architecture of the BNB Chain with the current technological demands.
Detailed Explanation on the Launching of Liquid Staking on BNB Smart Chain
Furthermore, the team explained how the liquid staking feature on the BNB Smart Chain will support ecosystem participants to protect the network and keep the liquidity of their assets. In the announcement, BNB Chain emphasized how it will help reduce security risks on the network.
While providing further insights into the benefits of liquid staking, BNB Chain stated that users can engage in DeFi activities without sacrificing asset liquidity. The staking feature will allow users to engage in decentralized finance actions without losing the utility of their assets. This is because they’ll have liquid staking tokens that depict their staked cryptocurrencies.
In addition, the staking feature permits holders of BNB to delegate their tokens to a liquidity pool or a validator. Meanwhile, the firm failed to establish the particular date the staking feature will become available, however, there are indications that it will surface by April or May.
It is worth mentioning that the liquid staking feature will be released alongside the maximum extractable value (MEV) optimization for the BNB Chain. The maximum extractable value will be an avenue for validators to enhance their staking rewards via MEV revenue.
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