Breaking: New Token Launch On Binance Chain, Here's How To Earn It
Stader Labs, a crypto company that builds staking products, has launched a new token, BNBx, on BNB Chain. Stader and BNBChain revealed that the token allows users to maximize their yield on BNB while maintaining liquidity.
BNB Chain is a blockchain platform that is launched by Binance and is powered by Binance Coin or BNB. BNB is currently up by more than 5% and is trading at $270.53.
How BNBx Works With BNB
In a blog post, Stader explained that BNBx will seamlessly work for those that are currently holding $BNB and choose to stake with Stader. With time, the value of BNBx will grow more compared to BNB.
Stader reveals that BNBx does not have a fixed APY. Instead, it has a dynamic APY that depends upon the rewards that validators are offering. When the users will stake BNB with their platform, they will automatically mint more $BNB. The platform then optimally stakes it with various validators.
In a different post, Stader explains that they will prioritize the validators who charge less than 10% from their delegators and have a reward rate higher than 5%. When the validators process transaction, they will generate rewards and increase the BNBx supply.
Stader reveals that BNBx is a reward-driven liquidity token. The value of the token will increase compared to BNB as more and more rewards are accrued. The exchange rates between the two tokens will be 1 at the launch of the product. However, as more and more transactions and staking occur, the rate will be adjusted according to a formula.
The Fee Structure Of The Token
Stader also detailed the fee structure of their token. They revealed that the users who stake will have to pay a transaction fee to Binance, which is not controlled by Stader. Moreover, there is also a reward fee of 10%, which will be paid by the users only after they have earned the reward.
Stader explicitly states that users will not pay any commission for staked BNB, only on the earned rewards.
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