Introduction to Binance BNB Vault
By Ogungbayi kabir
27/01/23
Introduction to Binance BNB Vault
Binance BNB Vault is a BNB yield aggregator that combines centralized and decentralized finance in just one click, allowing users to earn the best possible Annual Percentage Yield (APY) returns. The method basically integrates several products at once to generate better income, so users simply need to stake their tokens in order to navigate between different products.
There are three products integrated with the BNB Vault, namely:
1.Launchpool
Binance Launchpool is a platform that allows users to stake their BNB coins and earn new ones for free. It’s a popular source of passive income because it’s free, easy to use, and flexible. It basically involves putting staked crypto assets into a liquidity pool, so that they can be used by other users for various purposes. In exchange, the investor will receive returns from the trading fees in the form of new tokens. This process is typically known as DeFi yield farming. Users can add or remove their staked coins at any time, but to earn interest, the coins must be staked for a specific period of time (usually 30 days).
2.Flexible savings
Flexible Saving is basically a regular crypto saving account, so it allows users to earn interest simply by depositing and holding digital assets. The interest can also be redeemed at any time. However, the APY earned for each token is much less than what you would have received in staking. The reason is that in Flexible Savings, the exchange is actually taking the user’s tokens, staking on their behalf, and giving them a fraction of the profit.
3. Defi staking
Binance allows users to invest or stake in DeFi projects through smart contracts. In this case, it might be difficult for users to choose which project to invest in because not all of them are profitable. Also, DeFi staking can be risky at some point because users do not hold their private keys and Binance won’t be responsible for any losses incurred to the DeFi project failures.
By combining the three products in BNB Vault, users can get a chance to earn higher passive income than investing in them separately. BNB Vault has a simple interface that makes it easy for users to manage their BNB from multiple sources. It is a very well-designed, convenient, and user-friendly feature suitable for all kinds of BNB holders.
Users can take action with just a single click to automatically allocate the BNB coins to different products. Also, the staked tokens will be transferred to the user’s Flexible Savings account as one of the income sources, so the coins are still eligible for pre-existing BNB benefits such as VIP rights, airdrops, and Launchpad positions. Therefore, users can enjoy the benefits of coin staking on the exchange’s smart chain at the same time.
Why should I use the BNB Vault?
- Easy to stake.
- Enjoy multiple income earnings from the Binance ecosystem with just one click.
- Flexible redemption whenever you want.
How to calculate my income benefits?
Daily BNB Vault Income = New tokens rewarded from Launchpool + Simple Earn Flexible Product (BNB) + more
For example, when User A stakes 100 BNB in the BNB Vault, he will enjoy the following benefits:
- Receive rewards from the BNB Simple Earn Flexible Product every day.
- Receive new token rewards from Launchpool.
NOTE:
1.You can view your BNB Vault assets and income from [BNB Vault] - [My Share].
2.Income is calculated daily and will be distributed to your Spot account.
3.The BNB Vault income will begin to accrue interest at 00:00 (UTC) on the second day of staking, and the income will be paid to your Spot Wallet starting from the third day.
4.Your staked BNB in the BNB Vault will be deposited in Flexible Savings and are still eligible for BNB holding benefits from the Daily BNB Balance Calculation, such as airdrop, Launchpad holding position, VIP benefits, etc.
Conclusion
BNB Vault is a one-click earning service for your BNB holdings. It is a capital-guaranteed investment product with an easy-to-use interface. You can maximize the income potential of your BNB holdings by integrating various Binance products within the Binance ecosystem.
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