Binance cryptocurrency exchange has announced the launch of BNB Vault, an investment product that allows users to stake their BNB and earn 5-8% annual interest.
BNB Vault is a yield aggregator that lets users put their BNB tokens to work by utilizing the exchange’s wide array of financial products including DeFi staking, Flexible Savings, and the Launchpool to earn more income.
The official announcement on November 3 reads:
“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 staked BNB will start to accrue interest at 0:00 A.M (UTC) on the second day, and the income will be paid out to users on the third day. The announcement notes that income will be calculated on a daily basis and distributed to user spot accounts with estimated annual percentage yields (APY) of between 5%-8%.
Customers will be able to deposit and withdraw BNB with the utmost flexibility as Binance will take care of all the technical details.
During the income-generating process through the Vault product, staked holdings will still be eligible for BNB benefits like airdrops, Launchpad positions, and VIP rights.
Binance’s new offering comes on the back of yield farming, a phenomenon that has taken the DeFi space by storm after giving users staggering profits. Yield farming is believed to be one of the reasons for DeFi’s explosive growth in 2020. The sector went from $1 billion earlier this year to $10.9 billion in value locked in at press time. This explains why Binance is trying to join the party.