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Jimmy Zhao: BNB Chain Revolutionizes Staking With Native Liquid Staking Integration

Last Updated April 26, 2024 9:12 AM
Alisha Bains
Last Updated April 26, 2024 9:12 AM

BNB Chain, a prominent ecosystem within the crypto space known for its smart contract capabilities, has unveiled a significant update: the introduction of native liquid staking on its BSC blockchain. This new feature aims to empower validators in securing the network while ensuring liquidity for its assets as the ecosystem transitions away from the Beacon chain. 

By incorporating liquid staking, participants can now dynamically allocate their staked tokens across various protocols, opening up new avenues for maximizing value within the BSC ecosystem. This enhancement promises to boost incentives for delegators, offering compounding rewards and access to MEV strategies, while also granting them voting rights—a feature previously unavailable. 

The integration of native liquid staking is slated for rollout between April and May, following the completion of the BNB beacon chain’s sunse t. This migration process seeks to streamline operations, enhance efficiency, and align BNB Chain’s architecture with evolving technological needs and future expansion goals.

CCN.com approached Jimmy Zhao, Solution Architect at BNB Chain, for insights on the recent announcement regarding the inclusion of native liquid staking in BNB Chain’s BSC blockchain. Jimmy Zhao is a seasoned Senior Solution Architect at BNB Chain, with over a decade of diverse experience in system and infrastructure development. 

CCN: How Does Liquid Staking On BNB Chain Differ From Traditional Staking?

Zhao: Liquid staking on BNB Chain differs from traditional staking in its flexibility. Traditional staking often puts assets out of use for a certain period, lacking liquidity. With native liquid staking on BNB Chain, participants will stake BNB directly to the validator or the liquidity pool, enhancing the security of the BNB Chain network. By issuing liquid staking tokens that represent the staked BNB, users can engage in DeFi activities, therefore, allowing improved liquidity.

CCN: Why Is The Integration Of Native Liquid Staking Such A Big Deal For The BNB Chain Ecosystem?

Zhao: The integration of native liquid staking is significant for the BNB Chain ecosystem because it offers BNB holders increased flexibility in staking their assets and engaging in DeFi activities. It’s an opportunity to make the BNB Chain more attractive to users and MEV income streams. 

CCN: You Mentioned “Enhanced Mev Rewards.” Can You Elaborate On This And How It Benefits Both Stakers And The Network?

Zhao: BNB Smart Chain will implement the PBS (Proposer and Builder separation) to build a more transparent and fair MEV market to streamline the whole process and protect users and searchers. This can also give potential higher yields.

CCN: How Does A Broader Validator Base Strengthen The BNB Chain?

Zhao: A broader validator base brings greater network resilience and diversity in network expertise, creating a rich ecosystem, with diverse perspectives. This encourages innovation and allows for a robust decision-making process. Validators with diverse backgrounds can better represent the community’s varied needs.

CCN: Historically, Liquid Staking Solutions Have Sometimes Introduced Complexity Or Security Tradeoffs. How Does BNB Chain’s Approach Mitigate These Risks?

Zhao: BNB Chain’s approach to liquid staking balances the potential complexity and security risks by simultaneously streamlining the network, improving efficiency, and reducing security risks. This is achieved through the sunset of the BNB Chain Fusion, migration of functionality to BSC, and a proposed upgrade to enhance BNB Chain’s MEV offerings.

CCN: Beyond BNB, What Impact Do You Think Native Liquid Staking Could Have On The Broader Blockchain Landscape?

Zhao: It offers a viable alternative for asset management, maintaining liquidity while providing a platform for potentially higher yields from staking, and possibly influencing the future design of staking protocols across different networks.


The views expressed by Jimmy Zhao in this interview are solely his own and do not reflect the opinions or views of CCN.com or its affiliates.

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