How to delegate your binance coin(BNB) to earn up to 42.5% APY in BNB
Do you have binance coin lying around that does not yield anything? Is it on BNB launchpad, earning 1.63% on DODO coin? Well… you better read this to make your coin work harder for you!
If you haven’t signed up for binance, click here to sign up
Binance Smart Chain relies on a system of 21 validators with Proof of Staked Authority (PoSA) consensus. Since binance coin is referred as the poor man’s ethereum, lots of Defi activity is happening on Binance smart chain who cannot afford to pay hundred dollars per transaction. (Me neither) If you have binance coin lying around, you can delegate for bnb to one of 21 validators that mine the blocks on binance chain and get mining rewards. So, basically you are mining binance coin.
If you go to the binance staking website, you can see the list of validators.(click here)
We can see their names and the amount of binance coin that has been staked with that specific validator on the left side. The middle column shows commission / APR for that validator. Lastly, the active sign suggests that they are part of the 21 validators that are able to mine binance coin. So make sure you choose a node that is active or you will not get any rewards.
One thing to note is that the act of delegating is not a risk free. If the delegator you chose start doing malicious things for the bnb network, node’s bnb balance will get slashed depending on its seriousness.
For more information about the whole process, check the document here
To delegate your binance coin, you must first download Binance chain wallet, which is shown after clicking the bar on the right hand corner. If you used metamask before, binance wallet is pretty much the same thing except its made by binance. There won’t be much of a learning curve.
If you are new to Metamask and Binance chain wallet, click here for more information
After creating your new Binance wallet on your browser, send some BNB from your binance account. Important thing to note, when you withdraw BNB from binance exchange, you MUST send BEP2 not BEP20(Binance Smart chain). Delegation happens in Binance chain, not binance smart chain. If you did send it to BSC, you need to send it back to binance and withdraw again in binance chain.
After a while you will see binance coin in your wallet. All there is left to do is press the delegate button and put the amount you want to delegate in staking website. (Here)
Once you typed in the amount you want to delegate, you will have to sign it with your binance smart wallet. You simply double check everything is correct and press confirm.
That is all there is to it for you to earn up to 42.5% APY on top of the binance coin appreciation in US dollars!
One thing to note : when you try to unstake BNB, there is 7days of lock time for unlocking it. So, don’t delegate funds you need in short duration of time.
If you haven’t signed up for binance, click here to sign up
