Ripple’s XRP scores another win as Binance DeFi staking starts supporting it with up to 1.4% APR.
For years since the inception of decentralized finance (DeFi) on exchanges like Binance, only a few tokens have earned support on the Binance Defi platform. Basically, the said tokens are often the most reliable in the market. Binance conducts due diligence on the tokens before adding DeFi support for them in order to prevent investors from rug pulls and scams.
Now, it appears that Ripple’s XRP is winning a place among the various crypto coins supported by Binance DeFi staking. Binance exchange took to Twitter to announce the good news. The company also took the liberty of updating its announcement page to that effect.
MORE INFO & RISK WARNING BELOW.
— BINANCE (@BINANCE) AUGUST 3, 2022
What Is DeFi Staking?
DeFi staking involves users locking up their crypto holdings in a fashion similar to fixed deposits as termed in the traditional banking system. The catch behind the lock-up is earning more tokens as interest from the specific staking pool availed on the platform. Binance exchange operates stoke pools for various coins, with each having its own interest rate or APR percentage.
When staking, the user chooses how long they want to lock up their holdings. After that, they have no direct access to the funds until the said period is over. Meanwhile, the staking rewards are remitted to their spot account on a daily basis.
DeFi Staking Plan For XRP And LTC On Binance
According to a post by Binance announcing the addition of XRP and LTC to its staking pools, users who lock their tokens will earn 1.4% APR on their stakes. In the event that the user wants to unlock their stake, they can do so via the standard redemption procedure to free up their principal amount, which will then be credited to their spot account within 24-48 hours.