Binance Introduces On-Chain Returns with Babylon Bitcoin Staking

The world’s largest crypto exchange has announced the launch of an on-chain performance feature on its Binance Earn platform.

According to an official statement sent to CryptoPotato, Binance On-chain Yields will allow users to participate in on-chain protocols and earn rewards using their accounts on the crypto exchange.

Binance announces on-chain returns with Babylon

Binance’s new feature will go live with the Babylon Bitcoin Staking product on December 10 at 10:00 UTC; however, subscriptions will be available before 06:00 UTC on December 9th. Babylon is a protocol that allows bitcoin (BTC) holders to stake their bitcoins and earn rewards.

Babylon BTC Staking will launch with a limited quota of 1,000 BTC available to users on a first-come, first-served basis. Binance said the minimum and maximum subscription amounts per account are 0.05 BTC and 5 BTC, respectively. Users can earn rewards in the form of Babylon points by staking their bitcoins on the protocol.

To celebrate the launch, users will enjoy an additional 12% in rewards tied to the progress of Babylon Cap-3. Babylon Cap-3 refers to the third mainnet cap of Phase 1 of the protocol scheduled to launch on December 10 and to run for 1,000 blocks in Bitcoin, which is about a week.

Binance to incorporate more on-chain protocols

Binance intends to expand its on-chain performance offerings and is already working with more protocols. The exchange noted that this new feature will simplify access to on-chain protocols, eliminating the need for complex configurations.

“Users can explore high-performance opportunities to earn rewards in tokens, points and more, all directly within the Binance ecosystem. By managing all on-chain protocol integrations and operations, Binance ensures an easy process of use and accessible to all. Users can benefit from flexible exchange options with shorter processing times, improving convenience and accessibility,” the crypto trading platform said.

Although Binance believes that on-chain returns offer a good opportunity for users to earn more money, the entity warned that the offering is a high-risk product. There is no guarantee of principal or returns, protocols suffer from smart contract vulnerabilities and technical issues, leading to failure and loss of assets, and market volatility could affect returns.

Meanwhile, Binance claims to be the first centralized exchange to offer on-chain returns service.

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