Binance on Thursday announced the launch of DeFi staking and will start with DAI as the first DeFi Staking product. The details of the product has been shared on their official website.
DAI will be used to participate in Compound Staking, according to the statement released on their website. It also added that once tokens are locked-up using a DeFi Staking product, your assets will no longer earn monthly staking rewards.
DeFi (Decentralized Finance) is a way of providing financial services to users through smart contracts. Existing DeFi products are aimed at providing higher annualized earnings for specific currencies.
Advantages
Easy to use: You don’t need to manage private keys, acquire resources, make trades, or perform other complicated tasks to participate in DeFi Staking. Binance’s one-stop service allows users to obtain generous online rewards without having to keep an on-chain wallet.
Funds are safe: Binance selects only the top DeFi projects in the industry and monitors the DeFi system in real-time while it’s running in order to reduce the risks associated with such projects.
Higher earnings: DeFi Staking does away with the exorbitant fees that come with trading capital. Users are able to earn the highest possible returns in the best way, while maintaining the same level of risk.
Risks
Binance strives to offer its users only the best DeFi Staking projects. However, Binance only acts as a platform to showcase projects and provide users with related services, such as accessing assets on DeFi projects through a proxy and distributing earnings, etc. Binance will not assume liability for any losses incurred due to project on-chain contract security issues.
