Binance Launches DeFi Staking Promising ‘Generous Rewards’ Starting with DAI
The leading spot cryptocurrency exchange Binance has now launched Decentralized Finance (DeFi) staking.
The first DeFi product available for this service is the stablecoin DAI, and DAI staking is already live on the platform with annualized earnings of 12%.
Compared to traditional banking, the returns are high, but it is much lower to the APR via yield farming, which goes as much as over 100% and, in some cases, can go even 10x of this.
DeFi products are all about higher annualized earnings. With DeFi staking, Binance says using its service means users get to “obtain generous online rewards without having to keep an on-chain wallet.” It further points out how Binance only offers the top DeFi projects to reduce the risks.
Currently, the lock-up period for DeFi staking is one day, which will vary as more products are added. Also, Binance doesn’t bear any losses if an on-chain contract is attacked during DeFi staking.
The exchange further points out that DAI will be used to participate in the popular DeFi project Compound Staking, and “once your tokens are locked-up using a DeFi Staking product, your assets will no longer earn monthly staking rewards.”
Binance is taking full advantage of the ongoing DeFi craze, with constantly listing DeFi tokens and even launching perpetual contracts with high leverage.
This week, Binance Smart Chain also partnered with cross-chain data oracle platform Band Protocol to “bring decentralized and customizable oracles,” to its ecosystem and “open a gateway for truly scalable DeFi applications.”