Binance, the largest crypto exchange by trading volume, has announced a new staking service for its native token Binance coin (BNB) called the “BNB Vault.” Binance Vault is the latest yield product allowing users to stake their BNB tokens promising an interest rate ranging between 5-10%.
On Tuesday, the announcement was made through an official press release, which stated how the new yield product would work and allow users to make passive money on their staked tokens. The Binance press release read,
“BNB Vault is a capital-guaranteed investment product with flexible access. It integrates various Binance products to maximize the income potential of your BNB from both centralized and decentralized finance in just one click, allowing BNB holders to enjoy all the benefits of the Binance ecosystem with one click,”
The interest is calculated daily and even distributed daily to the user’s spot account. The yield for the vault is derived from several Binance earn products.
Yield Farming: A Growing Trend
The defi boom of 2020 saw several dex protocols, and products reach the peak of their popularity. During this boom, yield farming has emerged as a popular way of passive income. Customers stake their tokens for a fixed period and get a return after the period of maturity.
While cases have recently shown that many yield farming products have bitten the dust or exit scammed clients, Binance’s new BNB Vault should not pose any reliability issues.
