I always felt that the way bStocks used to be played was too monotonous: you buy, wait for it to rise, and then sell. Thatโs pretty much no different from buying tokenized stocks directly on a normal exchange.
The composability that on-chain assets should have hasnโt really been usedโthis time, with the
@Binance Wallet launch of the bStocks DeFi Center, the gap has finally been filled.
First: provide liquidity, earn trading fees
Put bStocks into the liquidity pool. When others buy and sell, the trading fees generated are shared with you.
Traditional LP operations require you to prepare the corresponding assets in advance and manually set the ratios; concentrated liquidity pools also need you to adjust the asset proportions based on price ranges, which is a hassle. Now, with the V3 pools that support Zap, itโs much easier: you can deposit single-coin or any ratio of bStocks + stablecoins, and the system automatically sets the proportions. If you want to exit, you can even withdraw only one type of coin.
Honestly, I really like this design. Before, holding bStocks meant you could do almost nothing besides wait for it to go up. Now, at least during a sideways market, youโre still getting fees.
Second: collateralized lending
Hold NVDAB (Nvidia bStocks) and SPCXB (SpaceX bStocks). If you donโt want to sell but need USDT to do something else, you can now pledge bStocks and borrow against it.
When the stock goes up, you still earnโwhile you also have an additional amount of usable funds in hand.
This logic is called stock collateralization in traditional stock markets. Back then, you had to go through procedures with a broker. Now you can do it directly in your wallet, which is the efficiency improvement thatโ in my viewโon-chain truly brings.
The lending list will show the collateral, borrowable assets, protocol, borrow interest rate, and total borrowed amount. It supports quick viewing of borrowable assets and which bStocks can be used as collateral.
Entry point: Binance Wallet โ Stocks section โ bStocks Savings & Lending โ LP or Loan tags
My real take: between these two features, Iโm more bullish on the lending side.
The reason is: with liquidity provision, thereโs the issue of impermanent loss.
If your bStocks price is volatile, when you withdraw it, you might end up with less than if you had just held directly. For people holding high-volatility assets like Nvidia and SpaceX, the returns might not be worth it.
The lending side is more straightforward.
You maintain your exposure to the stocks while freeing up a portion of liquidity. If youโre right, you benefit on both sides.
Of course, the risk is here too: if bStocks drops below the liquidation threshold, the system will forcibly sell to repay the debt.
This isnโt a small matterโbefore borrowing, think carefully about how much drawdown your position can withstand.
DYOR.
#BStocks