BNBx: A Comprehensive Guide

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BNBx: A Compreh...

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BNBx: A Comprehensive Guide

5 mins read / updated on Fri Nov 24 2023

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What is BNBx?


BNBx signifies a liquid digital asset that mirrors your part of the collective BNB resources staked with Stader. When you stake BNB to Stader's smart contract, you get BNBx freshly created based on the prevailing exchange rate. As rewards in BNB accumulate, the value of BNBx increases in relation to BNB.

Also Read: BNB Validators

Understanding the BNBx Reward Framework

Before delving into BNBx’s functionalities and reward framework, you must familiarize yourself with some terminologies:

  • Stake Pool TVL (Total Value Locked): Total number of BNB staked with Stader multiplied by the value of BNB.
  • Annualized Staking Rewards: This is the reward amount added to the Stake Pool TVL per epoch.

Note: It's worth noting that this rate is subject to change and isn't a constant annual return; it varies based on the returns given by multiple validators in the network.

Also Read: What Is A Validator

How to attain BNBx by staking BNB at Stader?



BNB staking employs a Proof of Stake (PoS) consensus process, with transactions confirmed by validators.

To stake BNB on Stader, one must have BNB in their digital wallet and then link it to the Stader DApp. After a successful connection, you can allocate BNB and, in return, gain BNBx, a liquid token applicable for a range of DeFi operations.

Stader Labs presents an effective way to stake BNB. By being a reputable liquid staking solution, it facilitates users to amass BNB staking rewards without the need to uphold any infrastructure. Additionally, it provides the chance to explore other DeFi techniques while constantly garnering rewards.

Also Read: Polygon Matic In Defi

Steps to stake BNB on Stader

Step 1: Connect and sign in to your wallet.

Begin by selecting the "Connect Wallet" option. A pop-up titled "Select Wallet" will be displayed. Then confirm your acceptance of the Terms of Service by checking the provided checkbox.

Now, choose the specific wallet you intend to connect with. Trust Wallet users can utilize "Wallet Connect" for this purpose.

And for Metamask wallet users, you must first enter your password and then choose your desired account. Next, tap on the "Connect" button.

Also Read: Smart Contracts

Step 2: Successful Wallet Connection.

Look at the top right corner of the dApp; it will exhibit your wallet address. Your BNB balance will be visible within the dApp.

Step 3: Staking begins.

Specify the total amount of BNB you want to stake. Now, verify the corresponding amount of BNBx you will receive. And lastly, click on the "Stake" button to proceed.

A prompt requesting your authorization will appear in your wallet. You need to approve the transaction. Once done, a pop-up will appear confirming the successful completion of the transaction. Just verify the updated BNBx balance in your wallet, and you are good to go! You can also refer to this to understand how to liquid-stake BNB with Stader.

Also Read: Binance Vs Bnb Chain

How does BNBx operate?

BNB stakers create BNBx based on the current exchange rate. Stader utilizes the BNB users give and enhances them via various network validators. As these validators carry out transactions, they generate rewards, which Stader reallocates to the staking pool, amplifying the BNBx value in circulation. Consequently, BNBx acts as a reward-bearing liquid asset whose value in comparison to BNB grows as staking rewards pile up.

Also Read: Ethereum Staking Rewards

What is the BNBx exchange rate & its functionality?

The exchange rate illustrates the cumulative value of the Stake Pool for every circulating BNBx.

It's computed as:

Exchange Rate = Total BNB in the staking pool/BNBx in circulation.

Initially, the BNBx exchange rate stands at 1. The ratio of BNBx to BNB changes with rewards added to the pool.

The subsequent calculation occurs:
Exchange Rate (post rewards) = Exchange Rate (prior rewards) + added rewards/BNBx in circulation.

How many BNBx will I secure post-BNB staking?

The BNBx tokens received are equal to the BNB amount staked divided by the prevailing exchange rate. Alternatively, you can utilize our dApp to simulate different scenarios post-linking your digital wallet.

For those pondering the reward frequency for staking on the BNB network, it's a daily process. These rewards are added daily to the BNB staking pool, updating the exchange rate immediately. Essentially, this update happens every day.

Also Read: Matic Staking Wallet

How often do I receive rewards for staking on the BNB network?

Staking rewards are accrued daily. The rewards are added daily to the BNB stake pool, and the exchange rate is updated immediately after the reward addition. Essentially, the exchange rate is updated every 24 hours.

Is there a BNB Staking calculator to calculate staking rewards with Stader?

Yes, you can scroll above and use the BNB Staking Calculator. It allows you to estimate potential rewards for your staked BNB based on factors such as the amount of BNB being staked, the duration of the staking period, and the annual staking rewards for BNB staking.

Is the BNBx token automatically associated?

The Stader smart contracts associate BNBx with the user wallet whenever staking occurs.

How are the BNB staking rewards accrued?

Regarding the accrual of BNB staking rewards, Stader's smart contract gathers the native rewards derived from the staked BNB and reallocates them to the smart contract daily, enhancing the BNBx exchange rate. Fresh BNBx assets are only created when a user deposits an equivalent BNB amount into our smart contract.

Also Read: Layer-1 Blockchain

How to convert BNBx back to BNB?

To convert BNBx back to BNB, access the Stader dApp and go to the 'unstake' tab. Initiate the unstaking procedure, which usually takes between 7 to 15 days. Once this is done, you can withdraw your BNB. In case, you want instant liquidity and wish not to wait for the unbonding period, then you can use some of our partner DEXs like Wombat Exchange & Thena to swap your BNBx to BNB directly.

Where can I utilize BNBx?

We have worked on an extensive list of partnerships that will support BNBx. The spectrum of partners will include DEXs, liquidity mining, lending/borrowing, and more. The following list of partners is live :

  • BNBx-BNB liquidity pool on Thena, Wombat, Pancakeswap and Ellipsis
  • BNBx-BNB reward optimizers on Ellipsis-Beefy, Wombat-Wombex, Thena-Planet, Wombat-Magpie, Wombat-Quoll, and BNBx-USDT on Thena-Planet.
  • BNBx lending & borrowing on Venus and Planet.
  • SD- BNBx pool on Thena. Many more to come! Access these opportunities via the Defi section of our dApp.

Has Stader integrated with any DeFi platforms?

We have already integrated the pipeline with multiple DEXs, Liquidity Pools, Yield Optimizers, Options trading, and more. Do check it out on the Defi section of the Dapp.

Conclusion

BNBx offers an innovative approach to staking, providing users with a liquid asset that represents their share in the BNB pool. With an array of features, partnerships, and easy-to-use processes, BNBx stands out as a viable option for those looking to maximize their digital assets. As the crypto world continues to evolve, BNBx is well-positioned to be at the forefront of this change.

Also Read: Cex Vs Dex

Frequently Asked Questions [FAQs]:

Q: What is the BNBx exchange rate, and how does it change?
A: The BNBx exchange rate denotes the total Stake Pool value for every circulating BNBx. This rate varies, especially when rewards are incorporated into the pool.

Q: How much BNBx will I secure after staking BNB?
A: Post BNB staking, the BNBx tokens one receives are equivalent to the BNB amount staked, divided by the prevailing exchange rate.

Q: Is the BNBx asset automatically associated?
A: Yes, Stader's smart contracts links instantly.

Q: What is the minimum and maximum amount for staking?
A: There is no minimum amount of staking BNB, and it is up to the user to stake how much BNB is with Stader.

Bnb Staking  | How To Add Binance Smart Chain To Metamask  | Bnb Luban Upgrade | How To Stake Bnb  | ERC-2O | How To Buy Bnb  | Binance Smart Chain | Bnb Luban Upgrade  | Benefits Of Staking BNB  | Best Crypto Wallets For Bnb  | BNB Chain vs EVM Chains  | BNB Validators  | Total Value Locked | BNB Auto Burn  | EIPs |What Is Liquid Staking | What Is Validator | Crypto Token | Type Of Blockchains | Staking Pool

By:

Zainab Saberi

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