Are you a BNB holder with some spare coins in your balance? Instead of letting it sit idly, you can invest in BNB Vault and earn passive income from multiple sources.

Binance Coin (BNB) is a cryptocurrency that powers the entire Binance Chain ecosystem and is primarily used to pay transaction and trading fees on the Binance crypto exchange. BNB was first released in July 2017 as an asset sold in Binance's Initial Coin Offering (ICO). Since then, the coin has retained a big role in the Binance's growing ecosystem and became the native currency of the exchange's very own blockchain, the Binance Chain (BC).

BNB Vault for Binance Token (BNB)

As one of the biggest crypto exchanges in the world, Binance offers many favorable features to improve its services, particularly when it comes to the development of BNB. Initially used to raise funds for the Binance exchange, BNB is then used to pay for transactions on the exchange and reduce transaction fees. Over time, the coin gained even more significance in other Binance products and became a huge part of the exchange as a whole. Apart from that, BNB coins can also be used for other crypto-related activities like credit card payments, loans and transfers, investments, and entertainment.

The problem is that sometimes it can be difficult to allocate the coins for various gains. For instance, users who invest their coins in DeFi staking won't receive Launchpool rewards and vice versa. Luckily, Binance recently launched the BNB Vault which allows users to combine several products at the same time in order to generate greater passive income. With the BNB Vault, users can stake their idle tokens in various products and earn about 5-8% annually.


Introduction to BNB Vault

BNB Vault is a BNB yield aggregator that combines centralized and decentralized finance in just one click, allowing users to earn the best possible Annual Percentage Yield (APY) returns. The method basically integrates several products at once to generate better income, so users simply need to stake their tokens in order to navigate between different products.

There are three products integrated with the BNB Vault, namely:


1. Launchpool

Binance Launchpool is a platform that allows users to stake their BNB coins and earn new ones for free. It's a popular source of passive income because it's free, easy to use, and flexible. It basically involves putting staked crypto assets into a liquidity pool, so that they can be used by other users for various purposes. In exchange, the investor will receive returns from the trading fees in the form of new tokens. This process is typically known as DeFi yield farming. Users can add or remove their staked coins at any time, but to earn interest, the coins must be staked for a specific period of time (usually 30 days).


2. Flexible Savings

Flexible Saving is basically a regular crypto saving account, so it allows users to earn interest simply by depositing and holding digital assets. The interest can also be redeemed at any time. However, the APY earned for each token is much less than what you would have received in staking. The reason is that in Flexible Savings, the exchange is actually taking the user's tokens, staking on their behalf, and giving them a fraction of the profit.


3. DeFi Staking

Binance allows users to invest or stake in DeFi projects through smart contracts. In this case, it might be difficult for users to choose which project to invest in because not all of them are profitable. Also, DeFi staking can be risky at some point because users do not hold their private keys and Binance won't be responsible for any losses incurred to the DeFi project failures.

By combining the three products in BNB Vault, users can get a chance to earn higher passive income than investing in them separately. BNB Vault has a simple interface that makes it easy for users to manage their BNB from multiple sources. It is a very well-designed, convenient, and user-friendly feature suitable for all kinds of BNB holders.

Users can take action with just a single click to automatically allocate the BNB coins to different products. Also, the staked tokens will be transferred to the user's Flexible Savings account as one of the income sources, so the coins are still eligible for pre-existing BNB benefits such as VIP rights, airdrops, and Launchpad positions. Therefore, users can enjoy the benefits of coin staking on the exchange's Smart Chain at the same time.

Binance Smart Chain is a smart contract-friendly blockchain product that hosts a number of DeFi protocols, like PancakeSwap and Arkane Network. Binance Smart Chain is not the same as Binance Chain.

The estimated APY that users could earn from BNB Vault is between 5% and 8%, but the actual number should depend on the benefits and risk level of each product as well as the amount of the BNB coins. Keep in mind that the staked funds will start to produce interest at 00:00 UTC on the second day of staking, and the income will be transferred to users on the third day. After that, the income will be distributed to the user's spot account daily. In addition, users can deposit and withdraw the money at any time.


How to Calculate BNB Vault Earnings

You can calculate your daily BNB Vault earnings by using the following formula:

BNB Vault Daily Earnings = New Launchpool Token Rewards + BNB Flexible Savings + DeFi Staking and other products

So, if you put 100 BNB on the BNB Vault, then you will get income from three resources:

  • Spot earnings from BNB flexible savings according to the quota of 100 BNB.
  • Token rewards from Launchpool according to the quota of 100 BNB.
  • Income from DeFi staking and other sources.


How to Use BNB Vault for Maximum Profit

To use BNB Vault, here are the steps that you'll need to follow:

1. Log in to your Binance user account. If you don't have one already, you can register on the exchange's official website.

2. Head over to the "Finance" tab and "Binance Earn", then go to "BNB Vault".

3. Click "Stake" and you'll see a pop-up window. Read the terms and conditions, then enter the amount of BNB that you'd like to invest in. Click "Confirm" to complete the transaction.

Step 3 BNB Vault

4. Once it's done, you can just sit tightly and wait for the coins to gain profit from the feature. The BNB tokens will automatically be allocated to different products on Binance.

As a side note, if you want to see the progress and manage your ongoing BNB staking, simply enter the exchange's "Earn" section and choose "My Share". You can see the details of the rewards on "My Rewards" or click the "Distribution History" to see the history of asset allocation to products.

Redeeming the coins

Last but not least, if you want to unstake your BNB coins, click "Unstake". You can then choose between "Fast Redemption" and "Standard Redemption". The former allows users to withdraw the BNB within the same day, whereas the latter allows BNB withdrawal for the next day so users can still get today's profits.


Final Words

Over the years, Binance remains one of the leading exchanges in the crypto industry and BNB Vault is undoubtedly one of its incredible products. It is able to solve the aggregator issue and provide a way for users to make the most of their BNB coins. It allows users to purchase and hold BNB coins in the long-term for maximum profits while at the same time, eliminating the need to manage different investment products manually.

Tell us what you want to find

All in all, BNB Vault is a great feature that could benefit any type of BNB holder. It's worth mentioning that profits from BNB Vault can be ten times more profitable than that of manual BNB staking, so it's definitely an attractive option to try if you have some spare coins in your wallet. The only potential risk is regarding the price volatility of BNB. Also, there's a possibility to earn lower rewards than expected since not all projects can be successful.


Now that you know how to get the best of BNB tokens, there's another type of token in Binance that is specifically geared to build fan communities. Learn all about it in "What are Fan Tokens on Binance?"