Leading cryptocurrency exchange Binance has added its own Binance Coin (BNB) to its decentralized finance (DeFi) staking offering, with an annual percentage rate of up to 25%, depending on the lock-in period.
According to an announcement the exchange published, users can now lock their BNB tokens for either 7 days or 30 days, with annualized returns ranging from 10.8% to 25%. The minimum amount that can be locked is 50 BNB. Each BNB token is currently trading at about $22.5, meaning the minimum users can invest is over $1,100.
The invested BNB tokens will be used to participate in Kava’s collateralized debt positions (CDP), effectively entering the decentralized finance space. The integration comes after Binance added DAI, the stablecoin generated by loans on MarkerDAO, to its DeFi staking offering.
It’s worth noting Kava itself is a DeFi platform backed by Binance, Huobi, and OKEx with a native token using the same name. CoinDesk quoted Binance as saying:
Our users have been requesting Binance.com giving them access to DeFi. Binance prioritizes user experience and in the spirit of the community, Binance.com now offers direct integration into these DeFi products allowing the products’ value to flow out to Binance.com users and that’s happening with KAVA and BNB to name a few.
The move means Kava users won’t need to use the app’s interface to invest, but can do so directly through the Binance platform. Kava’s CEO and co-founder, Brian Kerr, said that today’s DeFi market would not resemble that of tomorrow, claiming this is just the “tip of the iceberg” of the sector when it comes to adoption.
Nice