How to use Binance Locked Staking
What is Locked Staking?
“Locked staking” on Binance refers to the process of locking your digital assets for a defined period of time in return for rewards.
Binance Locked Staking provides an easy way for HODLers to stake and earn without withdrawing their assets from the Binance platform. There are two types of Locked Staking products:
- Proof of Stake (PoS) tokens: PoS is a consensus mechanism that selects block validators based on the number of tokens they stake. Generally, the rewards are proportionate to the number of tokens being staked, meaning that users who stake more tokens can receive higher rewards.
- Non-PoS tokens: You can also lock your non-PoS tokens for a certain period of time to receive rewards from the projects or Binance. Rewards may be generated from liquidity provision, margin loans, or other interest-generating activities. Generally, the maximum staking limit is relatively smaller compared to PoS staking.
Binance Staking will return the staked assets to your Spot Wallet at the end of the agreed staking period. Please note that your staked token count is protected. However, the fiat value of your staked tokens may fluctuate due to market conditions and the reward amount is subject to change.
1. What's the difference between Binance Staking and Binance Savings?
Binance Staking relies on Proof of Stake consensus, meaning that it is conducted on the blockchain through the use of smart contracts. On the other hand, Binance Savings is not conducted on the blockchain. It is a financial product that allows Binance users to lend and earn interests. It provides flexibility to redeem funds at any time and offers daily interest. The Binance Savings interests come from Binance Loan and Margin.
2. Why does it take several days for my funds to arrive after I redeem from Locked Staking?
As staking is conducted on the blockchain via smart contracts, the token redemption time varies according to the blockchain's consensus mechanism. Different blockchains require different redemption times.
For example, to unstake EOS, you need to wait 72 hours, while unstaking DOT requires you to wait 28 days.
Binance optimized the funds' distribution process and shortened the redemption time to 1 day. Please note that the standard redemption time is subject to the actual redemption time of the project blockchain. Binance may adjust the 1-day redemption time in the future.
3. Why is the APR (Annualized Percentage Rate) dynamically changing?
APR is a projection based on the rewards we have historically received (“Staking Rewards Rate”) from the applicable asset protocol. This rate is set by the applicable blockchain protocol, and is neither controlled, influenced, nor determined by Binance Staking and will change (and thus, the APR will change dynamically). Each blockchain sets its underlying rewards rate depending on various factors. The APR may be adjusted to account for funds we hold back from staking as part of our liquidity reserve, if applicable.
4. When will interest start to accrue and what is the redemption time?
- When you subscribe to a Locked Staking product, the amount required for the subscription will be deducted from your Spot Wallet.
- The interest will not incur on the day of the subscription. The interest will start to incur on the second day and will be distributed on the third day. For example, if you subscribe on 1 Feb, interest will be calculated from 2 Feb onwards and will be distributed on 3 Feb. Besides, the staking interest will be distributed daily.
- You can choose to redeem their funds in advance. After choosing early redemption, you will NOT lose your principal, but the distributed interest during the lock-up period will be deducted from the principal. Moreover, redemption requires a certain unlocking period. It takes 1 day to unlock the tokens and 1 day to redeem the funds. Due to time zone differences, it may take up to 48-72 hours in total.
- Redemption after the product expires: when the subscribed product expires, your assets will be redeemed from the chain and it requires a certain unlocking period. It takes 1 day to unlock the tokens and 1 day to redeem the funds. Due to time zone differences, it may take up to 48-72 hours in total.
5. When will I get the staking interest?
Interest will be calculated and distributed between 0:00 and 8:00 (UTC+0) on the second day after the subscription day.
However, distribution may be delayed sometimes due to unforeseeable network conditions.
6. What is the subscription limit?
Different staking products have different durations and subscription limits. Subscription limit refers to the maximum amount of tokens that each user can subscribe. Binance Staking will dynamically adjust the limits according to market conditions and the degree of risks.
How to use Locked Staking on Binance?
1. Log into your Binance account and click [Earn] - [Binance Earn].
2. Click [Staking] - [Locked Staking].
3. You will be redirected to the Staking page. Here you can see all the Locked Staking products with the estimated annual percentage rate (Est. APR), duration days, and the minimum locked amount.
4. Choose the asset you want to stake, adjust the duration, then click [Stake Now].
5. You’ll find details about the selected staking offer on the pop-up. Select the duration and enter the amount to stake. Confirm the subscription details, read and agree to the service agreement, and click [Confirm].
- Duration: You can click on the different duration to see their respective estimated annual percentage rate (Est. APR) to pick the best offer. Please note that the Est. APR is adjusted daily based on the on-chain staking rewards. During the staking period, your assets will be locked on-chain, so you won't be able to withdraw or perform any transactions with the allocated assets.
- Available amount: It shows the available balance in your Spot Wallet that you can use to stake on Locked Staking. There is a minimum amount required for staking. If your balance is lower than that, you won't be able to stake.
- Auto-Staking: You may choose to enable the Auto-Staking function. The system will automatically restake the product after the subscription period has expired.
Once you subscribe to the product, interests will be calculated from 00:00 (UTC) of the following day, and are distributed to your [Fiat and Spot Wallet] every day after 00:00 (UTC). When the process is complete, the staked assets will be redeemed automatically and returned to your Spot Wallet.
6. To view your Locked Staking history, go to [Wallet] - [Earn] - [Staking] - [Locked Staking].
7. To redeem your assets in advance, click [Redeem earlier].
Please note that unlocking your staked assets requires a specific time based on the specifications of the chain you're staking on. Binance Locked Staking allows you to redeem assets the following day. However, it sometimes takes up to 48-72 hours to receive the tokens due to different global time zones.
Please note that if you redeem the Locked Staking products in advance, the interest generated will be deducted from the principal when you unstake.
To learn more about Staking, please refer to the Academy article What Is Staking?